Foreign exchange: the euro falls below $ 1.13

FRANKFURT (dpa-AFX) – The euro rate fell on Tuesday and fell below 1.13 US dollars. The European common currency cost 1.1297 US dollars in the afternoon. At noon she had quoted even higher. The European Central Bank set the reference rate at 1.1331 (Monday: 1.1312) dollars. The dollar cost 0.8825 (0.8840) euros.

The price swings were limited. The rapid spread of the omicron variant in the US did not weigh on the dollar. It is now the dominant variant in the USA. The possibly lower disease severity calms the financial markets, said traders. The US health agency has recommended reducing the quarantine period from 10 days to 5 days. This is to prevent a labor shortage.

Meanwhile, the euro has lost a good deal of ground since reaching its interim high of $ 1.2266 in May. The background to this is the emerging drifting apart of monetary policy in the euro zone and in the USA. While the US Federal Reserve is accelerating the exit from its loose monetary policy and, according to current forecasts, expects a total of three rate hikes in 2022, no rate hike is expected in the euro zone.

For other major currencies, the ECB set the reference rates for one euro at 0.84248 (0.84330) British pounds, 130.16 (129.79) Japanese yen and 1.0381 (1.0396) Swiss francs. The troy ounce of gold was trading at $ 1,814 in London that afternoon. That was two dollars more than the previous day./jsl/he

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