©Reuters. The euro loses 1.05 dollars, the lowest since January 2017
Frankfurt (Germany), Apr 28 (.).- The euro fell this Thursday below the level of 1.05 dollars, its lowest value since January 2017, due to the energy crisis between Russia and the European Union (EU) , although it recovered positions later.
The euro was trading at $1.0525 as of 0845 GMT, versus $1.0520 in late European forex trading the previous day.
The energy crisis in Europe has triggered purchases of dollars, a currency that is a refuge for investors in times of great uncertainty, and is approaching parity with the euro.
“The speed of the dollar’s rise should lead to some profit-taking later in the month,” forecast analysts at UniCredit (BIT:).
However, they add, the dollar is strengthened by the tendency of investors to avoid risk due to the possibility that Russia ends the supply of natural gas to countries other than Poland and Bulgaria and that new lockdowns are applied in Beijing.
The euro has depreciated almost 6% against the dollar in April, according to UniCredit calculations.
The divergence in the monetary policy of the Federal Reserve (Fed) and the European Central Bank (ECB) drives up the price of the dollar because the ECB is less aggressive and is expected to tighten its monetary policy more slowly than the Fed, therefore that in the US interest rates are rising faster than in the eurozone.
Analysts at UniCredit expect the ECB to be verbally more aggressive in curbing the rapid depreciation of the euro.
The president of the ECB, Christine Lagarde, raised this Wednesday the possibility of raising interest rates this summer.
The single currency was traded in a trading band between 1.0481 and 1.0565.
