The euro falls on risk aversion
Frankfurt (Germany), Aug 15 (.).- The euro depreciated on Monday due to risk aversion, although some data from the US economy, which were much worse than expected, weakened the price of the dollar.
The euro was trading at $1.0192 at around 1500 GMT, versus $1.0255 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0195 dollars.
Fears of a recession reappear, outweighing the relief from lower inflation that comes with it, due to signs of an economic slowdown in China, where retail sales improved by 2.7% year-on-year in July and industrial production rose by 3 .8%.
Therefore, the People’s Bank of China cut two interest rates by 10 basis points and injected some 59.2 billion dollars into the financial system.
The fear of a recession is reflected in the demand for US Treasury bonds, whose yield remains high.
The Empire State Business Confidence Index for the State of New York fell sharply in August, 42.4 points, to -31.3 points, the lowest level since May 2020, at the beginning of the coronavirus pandemic, due to the strong drop in order intake, which signals a drop in demand.
The single currency was traded in a fluctuation band between $1.0186 and $1.0268.