© Reuters. Euro rises to $1.0760 after harsh ECB comments
Frankfurt (Germany), Feb 8 (.).- The euro appreciated this Wednesday to $1.0760, after statements by the Chairman of the Federal Reserve (Fed), Jerome Powell, and harsh comments from members of the European Central Bank (ECB).
The euro was trading around 4:00 p.m. GMT at $1.0722, compared with $1.0681 in the final hours of European currency market trading the previous day.
The ECB set the reference exchange rate for the euro at $1.0735.
The vice-president of the ECB, Luis de Guindos, said in an interview with the German newspaper “Süddeutsche Zeitung” that they are going to raise interest rates more.
“The fight against inflation has not yet been won,” according to de Guindos, and for this reason he did not rule out further increases in interest rates after March.
The president of the central bank of the Netherlands, De Nederlandsche Bank, Klaas Knot, said in an interview with MNI Market News that it seems that headline inflation has already peaked but that interest rates will need to be raised at a rate of 50 basis points. until May if the underlying, which discounts the most volatile elements, does not remit.
German ECB executive board member Isabel Schnabel told a webinar hosted by Finanzwende on Wednesday that interest rate hikes have had little impact so far, hinting that more will be needed.
Powell told a forum hosted by the Economic Club of Washington that it will be necessary to keep raising interest rates for a while as the “disinflation” process has only just begun and “has a long way to go.”
The single currency was exchanged in a fluctuation band between 1.0716 and 1.0760 dollars.