© Reuters. The euro falls to $ 1.1250 amid the spread of the coronavirus in Europe
Frankfurt (Germany), Nov 19 (.) .- The euro has depreciated this Friday to $ 1.1250, the lowest since July 2020, given the spread of the coronavirus in Europe, which drives the purchase of currencies that are considered an investment safe as the dollar.
The euro was trading at around 16:00 GMT at $ 1.1318, compared to $ 1.1350 in the last hours of the European currency market trading the previous day.
The European Central Bank (ECB) set the benchmark exchange rate for the euro at $ 1.1271.
The new confinement in Austria and the restrictions in Germany have contributed to the depreciation of the euro.
In addition, the president of the ECB, Christine Lagarde, said that she does not want to “withdraw monetary stimulus prematurely in the euro area” so as not to hinder the economic recovery and because she is convinced that the current high inflation will subside.
The ECB’s chief economist, Philip Lane, said on Thursday that he does not see inflation expectations exceeding the bank’s target, which is a 2% rate in the medium term.
The expansionary monetary policy of the ECB does not invite investors to buy euros because the dollar and investments denominated in that currency are more attractive since the Federal Reserve (Fed) is going to begin to reduce its monetary stimulus and raise interest rates in USA.
The single currency was exchanged in a fluctuation band between $ 1.1250 and $ 1.1373.
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