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Foreign exchange: euro exchange rate remains above 1.13 US dollars – British pound gains

NEW YORK (dpa-AFX) – The euro asserted itself above 1.13 US dollars in US trading on Thursday. Most recently, the common currency cost $ 1.1324. It was quoted a little higher than in the early European business. The euro has largely lost more significant gains in the meantime. The European Central Bank (ECB) set the reference rate at 1.1336 (Wednesday: 1.1262) dollars. The dollar cost 0.8822 (0.8879) euros.

In view of rising inflation rates, the ECB sent the first signal that its ultra-loose monetary policy was coming to an end. The European Central Bank will only purchase additional securities as part of its Pepp Corona emergency purchase program until the end of March 2022. However, the central bank continues to invest billions in the purchase of government bonds and corporate papers, as the Governing Council decided. The general APP purchasing program will be temporarily increased. At the same time, the central bank significantly increased its inflation forecast for the next year.

“Monetary policy in Europe will remain on the accelerator for almost the entire next year,” commented Dekabank chief economist Ulrich Kater. “It is difficult to understand that the path of monetary policy normalization is not shortened, even if the two percent target is reached or even exceeded in the ECB’s inflation forecasts in the coming years.” Overall, however, the decisions of the European Central Bank were expected on the financial markets and therefore only triggered temporary price fluctuations.

The Bank of England took a different approach. In view of the high inflation, it raised the key rate for the first time since the beginning of the corona pandemic. It increases by 0.15 percentage points to 0.25 percent. The British pound then gained against many major currencies. The central bank also promised further increases, albeit at a moderate pace./la/men

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Reference-www.finanzen.at

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