©Reuters. Euro stabilizes above $1.05
Frankfurt (Germany), Apr 29 (.).- The euro stabilized this Friday above the level of 1.05 dollars due to the improved mood in the markets, as shown by the rises in the stock markets in Europe, and after the publication of data on the US economy and the euro area.
The euro was trading around 1500 GMT at $1.0550, versus $1.0515 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0540 dollars.
Economic growth in the eurozone slowed to 0.2% in the first quarter of the year marked by the war in Ukraine and the rise in inflation, which rose one tenth again in April and marks a new record of 7.5 %.
Core inflation in the eurozone, excluding energy, food, alcohol and tobacco, has shot up from 2.9% to 3.5%, more than expected.
The sharp rise in prices increases the pressure for the ECB to act and tighten its monetary policy, although as it is expected that the Federal Reserve (Fed) will raise interest rates faster, yields in the US rise and this drives up the dollar.
Inflation rose in the US in March at the fastest rate since January 1982 as the war in Ukraine has pushed up energy prices and created more supply problems and consumer demand remains strong.
Consumer prices rose 6.6% year-on-year in March in the US (6.3% year-on-year in February), but discounting food and energy, because they are more volatile, they increased 5.2% year-on-year (5.3% in February).
Consumer confidence rose less than expected in April in the US, but consumer spending rose 1.1% in March from the previous month.
The single currency was traded in a trading band between 1.0491 and 1.0593.
