© Reuters. The euro has fallen to its lowest since July 2020 due to US inflation
Frankfurt (Germany), Nov 11 (.) .- The euro has fallen this Thursday to the lowest since July 2020, at the level of $ 1.1450, due to the sharp rise in inflation in the US, which will lead to the Federal Reserve (Fed) to reduce monetary stimulus and, perhaps, to raise interest rates earlier than expected.
The euro was trading at around 4:00 pm GMT at $ 1.1470, compared to $ 1.1526 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 $ 1.1460.
In addition, the dollar has appreciated due to investors’ aversion to risk.
The ECB reiterates that it does not dispute ending asset purchases or quantitative easing.
But in the euro zone, market bets that the ECB will raise rates next year also remain high, according to analysts at Monex Europe.
The one-year euro interest rate is at levels last seen in 2014 and the ECB expects the ECB to raise interest rates by at least 25 percentage points in 2022.
The Governor of the Austrian Bank, Robert Holzmann, a member of the Governing Council, said that the ECB’s bond purchases could end next fall, depending on the evolution of inflation.
The single currency was exchanged in a fluctuation band between 1.1454 and 1.1488 dollars.
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