The euro rises after Lagarde acknowledges that inflation will remain high By EFE

Frankfurt (Germany), Oct 28 (.) .- The euro appreciated this Thursday after the president of the European Central Bank (ECB). Christine Lagarde, recognized that inflation will remain high longer than they thought.

The euro was trading at around 15:15 GMT at $ 1.1681, compared to $ 1.1595 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 $ 1.1593.

Lagarde has acknowledged that high inflation will last longer and has warned that rising energy prices “may reduce the purchasing power” of citizens of the euro area in the coming months.

These inflation warnings may lead the ECB to reduce monetary stimulus earlier than previously thought.

In addition, investors sold dollars after the publication of disappointing growth figures for the US economy.

The economic recovery of the United States came to a halt in the third quarter of the year, when the gross domestic product (GDP) registered a growth of only 0.5%, due, among other reasons, to the impact of the delta variant of covid-19, the withdrawal of government aid or problems in supply chains.

Consumer spending, which accounts for two-thirds of the economy in the country, grew by just 1.6% between July and September, compared to 12% in the second quarter of the year.

But consumer prices have soared to 5.3%, much more than expected, and claims for unemployment benefits fell to 281,000 last week (291,000 the previous week).

The euro has been in a downtrend for several months, but in the last two weeks it has recovered somewhat without reaching $ 1.17.

The single currency was exchanged in a fluctuation band between 1.1582 and 1.1687 dollars.

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