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© Reuters. The euro falls sharply after the drop in inflation in Germany
Frankfurt (Germany), Jan 3 (.).- The euro depreciated sharply on Tuesday below 1.0550 dollars, the lowest since the beginning of December, after publishing the sharp fall in inflation in Germany and due to the strength widespread use of the “green ticket”.
The euro was trading around 4:00 p.m. GMT at $1.0570, compared with $1.0666 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 $1.0545.
After touching $1.07, the euro fell to $1.0520 after the release of preliminary inflation figures from Germany.
Harmonized inflation fell in Germany in December to 9.6% year-on-year, from 11.3% in November.
If inflation subsides in the euro area, the ECB will not need to raise interest rates as aggressively, although this fall in Germany may have been caused by state aid for heating payments in December after the sharp rise in prices. gas prices.
Despite the fall in December, some experts rule out that inflation will ease quickly in Germany and could last one or two years until price stability is achieved again.
The ECB raised the price of money by 250 basis points last year, up to 2.50%, and it will raise it further in 2023, in February probably by another 50 basis points.
The yield on the US Treasury debt at ten years stands at 3.76% and at two years at 4.36%.
The single currency traded in a trading band between $1.0520 and $1.0680.
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