©Reuters. The euro falls after the rise in the yield of US Treasury debt
Frankfurt (Germany), Apr 8 (.).- The euro has depreciated this Friday after the yield on the US Treasury debt rose and before the first round of the presidential elections in France.
The euro was trading at $1.0876 by 3pm GMT, versus $1.0910 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0861 dollars.
The prospects of sanctions against Russia also weigh on the single currency.
US sovereign debt yields rise after the Federal Reserve (Fed) signaled that it will reduce its balance sheet faster than it did in the previous quantitative tightening cycle.
Prospects that the Fed will sell bonds push bond prices lower and yields higher.
The president of the Federal Reserve Bank of St. Louis said they need to raise interest rates towards 3.5% this year to contain inflation.
Likewise, the president of the Federal Reserve Bank of Atlanta, Raphael Bostic, and that of Chicago, Charles Evans, reiterated that it would be appropriate to move monetary policy to a neutral level until the end of the year.
The return on US Treasury debt at ten years exceeds 2.7% and at two years it is around 2.5%.
This morning, the euro fell against the dollar to “a one-month low after learning that the European Union (EU) banned imports of Russian, in its first measure aimed at Moscow’s energy income,” comment Monex Europe analysts .
At the same time, adds Monex Europe, “concern about the French elections weighs on the euro, as the prospects of a Le Pen victory seem to increase with each opinion poll.”
The single currency was traded in a trading band between 1.0836 and 1.0892.