The euro depreciated this Friday and approached parity with the dollar, an exchange rate of one to one, the level to which it fell in mid-July, after some data from the US economy boosted the greenback.
(See: How are the ‘avalanche’ and ‘snowball’ methods to pay off debts).
This Friday, August 19, the euro exchanged 1.0045 dollars, vs. $1.0126 in late European forex trading on Thursday.
The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0054.
(See: US consumer spending held firm in July).
The dollar rose against the euro on the investors’ aversion to risk and the aggressive monetary policy of the Federal Reserve (Fed).
Interest rates are higher in the United States than in the euro zone, making dollar-denominated investments more attractive.
The president of the Federal Reserve Bank of San Francisco, Mary Dally, said in an interview with the chain CNN What is it “too soon to declare victory against inflation“and that a 50 basis point hike or a 75 basis point hike would be appropriate.
(See: Inflation: which are the Latin American countries with the highest data).
The chairman of the Fed, Jerome Powell, could give more information on the next movements of interest rates in the United States at the annual meeting of central banks in Jackson Hole, Wyoming.
During this Friday, the single currency of the euro zone was exchanged in a fluctuation range between 1.0043 and 1.0094 dollars.
(See: Recession in the US: these are the odds, according to report).
EFE
