©Reuters. The euro falls and approaches parity again
Frankfurt (Germany), Aug 19 (.).- The euro depreciated this Friday and is approaching parity with the dollar, an exchange rate of one to one, a level to which it fell in mid-July, after some data from the US economy will boost the “greenback”.
The euro was trading at $1.0045 around 3pm GMT, down from $1.0126 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0054 dollars.
The dollar rises due to investors’ aversion to risk and the aggressive monetary policy of the Federal Reserve (Fed).
Interest rates are higher in the US than in the euro area and this makes dollar-denominated investments more attractive.
The president of the Federal Reserve Bank of San Francisco, Mary Daly, said in an interview with CNN that it is “too early to declare victory against inflation” and that a hike of 50 basis points or 75 basis points would be appropriate. .
Fed Chairman Jerome Powell could give more information on the next movements in US interest rates at the annual central banking meeting in Jackson Hole, Wyoming.
The single currency was traded in a fluctuation band between $1.0043 and $1.0094.