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© Reuters. The euro falls and is exchanged around 1.0650 dollars
Frankfurt (Germany), Feb 22 (.).- The euro was exchanged this Wednesday around 1.0650 dollars before the Federal Reserve (Fed) publishes the minutes of its February monetary policy meeting.
The euro was trading around 4:00 p.m. GMT at $1.0638, compared with $1.0683 in the final hours of European currency market trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0644.
Caution and risk aversion in the markets, due to geopolitical tensions, boost the dollar, considered a safe haven investment in times of uncertainty.
It is also feared that the drop in inflation in the US will take longer than expected, so the Federal Reserve (Fed) will have to raise its interest rates more.
Markets expect the Fed’s February 1 meeting minutes to confirm the aggressive tone the Fed has shown so far in its determination to fight inflation.
Business confidence rose again in February in Germany as the German economy gradually emerged from a period of weakness.
Prices increased in January in Germany by 9.2% year-on-year, according to harmonized data.
The single currency was exchanged in a fluctuation band between 1.0624 and 1.0663 dollars.
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