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That is why the euro has temporarily dropped to its lowest level since mid-2020

The euro temporarily fell to its lowest level since mid-2020 on Thursday.

In the day’s low, the common currency, the euro, cost 1.1454 US dollars. It was last listed even lower in July 2020. The euro barely recovered in the afternoon, trading at $ 1.1468. The European Central Bank (ECB) set the reference rate at 1.1460 (Wednesday: 1.1558) dollars. The dollar cost 0.8726 (0.8652) euros.

The trigger for the recent strong euro losses are inflation data from the USA from the previous day. At 6.2 percent, consumer prices there rose more sharply in October than they have been in 31 years. The high inflation arouses expectations of interest rate hikes by the US Federal Reserve, which tends to make the dollar more attractive. It appreciates against other currencies such as the euro.

Meanwhile, the Austrian central bank chief Robert Holzmann has spoken out in favor of the ECB being able to completely stop its securities purchases as early as 2022. If inflation is in line with the ECB’s target in the long term, purchases could cease in autumn or towards the end of 2022, Holzmann said late on Wednesday evening in London. He is seen as a representative of a tight monetary policy, which is currently not considered to have a majority in the Governing Council.

The market received only a few impulses on Thursday. No market-moving economic figures have been published in the eurozone. Veterans Day is a public holiday in the United States.

For other major currencies, the ECB set the reference rates for one euro at 0.85538 (0.85548) British pounds, 130.59 (130.90) Japanese yen and 1.0561 (1.0555) Swiss francs. The troy ounce of gold was trading at $ 1,862 in London that afternoon. That was $ 12 more than the day before.

/jsl/he

FRANKFURT (dpa-AFX)

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Reference-www.finanzen.at

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