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©Reuters. The euro falls due to the flight from risk
Frankfurt (Germany), May 9 (.).- The euro depreciated this Monday below the level of 1.05 dollars because the flight from risk, due to fear of a recession, leads investors to take refuge in the debt of the US Treasury and in the dollar and drives its price up.
The euro was trading at $1.0530 around 3pm GMT, versus $1.0577 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0559 dollars.
The yield on the ten-year US Treasury debt maintains the upward trend and reached 3.2%, the highest since November 2018, because the Federal Reserve (Fed) is expected to raise interest rates faster than the ECB .
The yield on the 10-year German bond rose to 1.17%, the highest since 2014, making it lower than the yield on US debt.
Investor confidence in the euro zone worsened in May again, for the third month in a row, to the lowest level since June 2020 due to the war in Ukraine, according to consultancy Sentix.
The single currency was traded in a trading band between 1.0495 and 1.0574.
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