©Reuters. Euro falls below $1.1350 on risk aversion
Frankfurt (Germany), Jan 18 (.).- The euro has depreciated this Tuesday below 1.1350 dollars due to the risk aversion of investors who take refuge in assets considered safe after some disappointing data from the US economy .
The euro was trading at $1.1339 as of 4:15 p.m. GMT, versus $1.1400 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.1367 dollars.
Yields on 10-year US Treasury bonds have risen to 1.85%, the highest in two years, and those on 2-year bonds, to 1.06%.
Investors anticipate that the Federal Reserve (Fed) will begin to raise interest rates in March and will have to accelerate the restriction of its monetary policy, so that in 2022 it could undertake four increases in rates instead of the three that they had previously planned because the US economy is growing strongly and employment is improving.
The sharp rise in investor confidence in Germany in January somewhat slowed down the fall in the euro.
The investor confidence index from the Center for European Economic Research (ZEW) rose 21.8 points in January to 51.7 points.
New York State’s Empire State Manufacturing Activity Index fell to -0.7 points in January from 31.9 points in December.
The single currency was traded in a trading band between $1.1336 and $1.1422.
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