©Reuters. The euro rises due to the slowdown in inflation in the US
Frankfurt (Germany), Aug 11 (.).- The euro rose this Thursday and exceeded the level of 1.0350 dollars, after the publication of wholesale price inflation in the US, which shows a slowdown.
The euro was trading around 3pm GMT at $1.0340, down from $1.0344 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0338 dollars.
After consumer prices in the US slowed down their rise to 8.5% year-on-year (9.1% in June, the highest for forty years), wholesale prices show the same trend.
Producer price inflation, which influences consumer prices, also shows a slowdown to 9.8% year-on-year in July (11.3% in June).
Compared to the month of June, prices even fell 0.5%, the first drop since April 2020, at the beginning of the pandemic.
The drop in inflation in the US in July reduces the need for the Federal Reserve (Fed) to raise its interest rates very aggressively to control the rise in prices and will not increase the differential with interest rates in the area as much of the euro, where the ECB began raising its own in July.
The single currency was traded in a fluctuation band between $1.0276 and $1.0364.