The euro fell 0.5% to $1.0676, its lowest level since November. The biggest weekly fall against the dollar in almost a year is expected – by 1.5%.
The euro/dollar exchange rate fell to its lowest level this year. The reason is that the European Central Bank looks set to cut interest rates before the US Federal Reserve, Bloomberg reports.
It noted that the euro fell 0.5% to $1.0676 (the lowest level since November). The biggest weekly fall against the dollar in almost a year is expected – by 1.5%.
The drop reportedly followed assurances from ECB officials that they were not surprised by a more cautious outlook in the US, where high inflation figures triggered a shift in sentiment. That led traders to bet the ECB would cut rates by a quarter point in June.
Money markets have pushed the expected date for the Federal Reserve to begin easing policy with a meeting to September.
Brad Bechtel, head of FX at Jefferies in New York, said: “The euro’s fall to $1.07 suggests a June rate cut is on the cards.”
“A break at this level would be an important step towards 1.05,” with the euro likely to reach this level by the time the ECB starts easing policy,” he said.
Remind us that the average cash dollar selling rate increased to UAH 39.50, and the euro exchange rate increased to UAH 42.90.
Earlier, the National Bank named the reasons for the recent increase in the dollar’s exchange rate. During the month, the exchange rate of the American currency updated records more than once. And the historical maximum was recorded on March 27 – 39.34 UAH/dollar.
Source: korrespondent
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