©Reuters. The euro falls to $1.0520, its lowest in more than five years
Frankfurt (Germany), Apr 27 (.).- The euro fell this Wednesday below the level of 1.0550 dollars, the lowest for more than five years, because investors take refuge in the greenback.
The euro was trading around 3pm GMT at $1.0520, versus $1.0650 in late European forex trading the previous day.
The European Central Bank (ECB) set the exchange rate for the euro at 1.0583 dollars.
The dollar advances due to the divergence in the monetary policy of the Federal Reserve (Fed) and the European Central Bank (ECB).
“The euro falls to lows not seen since 2017 pressured by the general risk aversion and the divergence between the monetary policies of the Fed and the ECB,” according to Ebury.
“The recent change in the ECB’s policy stance has failed to boost the euro against the dollar, as the ECB is relatively less aggressive, and the ECB’s monetary policy is expected to tighten at a slower pace than the Fed,” they add. the Ebury analysts.
Also pushing the euro down is the increased risk of stagflation in the euro zone against the US as a result of the war in Ukraine.
Likewise, tensions between the European Union (EU) and Russia over energy supply are weighing down the price of the euro.
Russia has cut off gas supplies through Bulgaria and Poland to the EU.
Continued market volatility broadly favors the US dollar in safe-haven flows.
The general sale of risk assets, due to concerns about the global economic slowdown, has taken the euro to $1.0520.
The single currency was traded in a trading band between 1.0519 and 1.0655.
