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©Reuters. The euro falls and is exchanged around 1.0550 dollars
Frankfurt (Germany), May 2 (.).- The euro was changed this Monday to 1.0550 dollars due to the strength of the dollar due to the rise in the yield of US Treasury bonds and risk aversion.
The euro was trading around 3pm GMT at $1.0530, versus $1.0550 in late European forex trading the previous day.
The European Central Bank (ECB) today set the reference exchange rate for the euro at 1.0524 dollars.
US sovereign debt yields rise as the Federal Reserve (Fed) is expected to hike interest rates aggressively this week to curb inflation and will do so again in the summer.
However, the ECB is going to normalize its monetary policy more gradually.
The Vice President of the ECB, Luis de Guindos, said that a rise in interest rates in July is possible, in an interview with El Correo (Grupo Vocento (BME:)).
Some data from the region’s economy did not help the price of the euro either.
Manufacturing activity in the euro area fell in April and the European Commission’s (EC) economic confidence index has also fallen.
“Economic growth in the manufacturing sector weakens further amid record selling price inflation,” according to S&P Global (formerly IHS Markit).
Its final purchasing managers’ index for the manufacturing sector in the euro area fell in April to 55.5 points (56.5 points in March), registering its minimum of the last fifteen months.
However, the manufacturing industry grew in April in the US, also according to data from S&P Global.
The war in Ukraine, the lockdowns in China and inflation worry the markets.
Germany’s support for a European Union (EU) embargo on Russian imports raises fears of a recession in Europe.
The single currency was traded in a fluctuation band between $1.0503 and $1.0568.
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