Foreign exchange: The euro is coming under pressure due to the worsening corona situation
FRANKFURT (dpa-AFX) – The euro was noticeably burdened on Friday by heightened corona fears. In the afternoon, the European common currency cost 1.1314 US dollars. At times it had even fallen below $ 1.13. The euro was noticeably higher in the morning. The European Central Bank (ECB) set the reference rate at 1.1271 (Thursday: 1.1345) dollars. The dollar cost 0.8872 (0.8815) euros.
The euro was burdened by the aggravated corona situation in Germany and other European countries. Austria will go into lockdown again from Monday. The German Federal Council agreed to stricter corona rules, while the Managing Minister of Health Jens Spahn did not rule out a lockdown in Germany.
“Against the background of the worsening corona situation, the economic risks are increasing again, especially in the service sector,” commented Ulrich Kater, chief economist at Dekabank. The expectations for economic growth in the euro zone are therefore likely to be revised further downwards.
In the meantime, ECB President Christine Lagarde affirmed that the central bank remained extremely loose, despite higher inflation. A first rate hike in the corona pandemic will therefore be a long time coming. This prospect has been weighing on the euro for some time.
For other major currencies, the ECB set the reference rates for one euro at 0.83928 (0.84173) British pounds, 128.22 (129.58) Japanese yen and 1.0462 (1.0511) Swiss francs. The troy ounce of gold was trading at $ 1,862 in London that afternoon. That was three dollars more than the previous day./jsl/la/he
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