© Reuters. The euro falls to the lowest since July 2020 against the dollar
Frankfurt (Germany), Nov 16 (.) .- The euro fell to its lowest since July 2020 on Tuesday, below $ 1.14, following the increase in the profitability of US sovereign debt, while concerns about the new wave of the coronavirus in Europe.
The euro was trading at around 16.00 GMT at $ 1.1350, compared to $ 1.1423 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 $ 1.1368.
The dollar rose after the increase in the yield of the US Treasury debt after the publication of the increase in retail sales in the US in October of 1.7%, compared to the previous month, more than expected and from comments from some members of the Federal Reserve (Fed) in favor of a more restrictive monetary policy.
The increase in the interest rate differential between the US, which is going to reduce its stimuli and therefore raise rates, and the euro area, which is not going to reduce them, boosts purchases of dollars because investments in this currency are more profitable.
The euro area’s gross domestic product (GDP) grew by 2.2% between July and September compared to the previous quarter, while the employment rate increased by 0.9% in the same period.
The single currency was exchanged in a fluctuation band between 1.1330 and 1.1386 dollars.
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