©Reuters. The euro rises after the increase in tolerance to irrigation
Frankfurt (Germany), Apr 20 (.).- The euro has appreciated this Wednesday to its maximum value against the dollar for a week, after the increase in risk tolerance among investors and comments of a rate hike interest in the eurozone in July.
The euro was trading at $1.0860 by 3pm GMT, versus $1.0790 in late European forex trading the previous day.
The European Central Bank (ECB) today set the reference exchange rate for the euro at 1.0830 dollars.
The euro managed to appreciate, despite higher yields on US Treasuries than in the euro area, due to increased risk tolerance, which has led many currencies to appreciate against the dollar.
Despite this, expectations of aggressive interest rate hikes in the US and the more gradual normalization of monetary policy in the eurozone put pressure on the euro.
But today the Governor of the Bank of Latvia, Martins Kazaks, said in an interview with Bloomberg that the ECB could raise interest rates in July.
Bundesbank President Joachim Nagel said in Washington that he expects the interest rate hike to take place in the summer, at the beginning of the third quarter, in July, and that the ECB will stop buying debt at the end of the second quarter.
St. Louis Federal Reserve Bank President James Bullard is even contemplating a 75 basis point interest rate hike at the May meeting to quickly curb inflation.
But other members of the Fed, such as the president of the Atlanta Federal Reserve Bank, Raphael Bostic, and the Chicago Federal Reserve Bank, Charles Evans, calmed these expectations somewhat.
The single currency was traded in a trading band between $1.0784 and $1.0867.