© Reuters. The euro rises and exceeds 1.09 dollars
Frankfurt (Germany), Jan 25 (.).- The euro rose this Wednesday and exceeded the level of 1.09 dollars despite risk aversion in the markets and after the sale of dollars after the Bank of Canada said that inflation has already peaked and will signal the end of interest rate hikes.
The euro was trading around 4:00 p.m. GMT at $1.0896, compared with $1.0877 in the final hours of European currency market trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0878.
Bundesbank President Joachim Nagel believes that the ECB should raise interest rates further in the euro area due to high inflation and that, despite inflation falling in recent months, it will take years for the ECB to dominate the rising prices.
Nagel said in an interview with “Spiegel online” that the ECB will raise interest rates sharply again in February and March and that he would not be surprised if it continues to raise rates after these meetings.
Central Bank of Ireland Governor Gabriel Makhlouf also said they need to raise interest rates at next week’s meeting to the same extent as in December, by 50 basis points.
Likewise, the governor of the Bank of Slovenia, Bostjan Vasle, considered it appropriate to raise interest rates by half a point in the next two meetings.
The single currency was exchanged in a fluctuation band between 1.0858 and 1.0922 dollars.