NEW YORK (dpa-AFX) – The euro came under some pressure in late trading on Tuesday. After a jump above 1.10 US dollars in the morning, the momentum has recently decreased significantly. The euro traded at $1.0942. The European Central Bank had set the reference rate at 1.0991 (previous day: 1.0960) dollars. The dollar thus cost 0.9098 (0.9124) euros.
Talks between Russia and Ukraine have recently fueled hopes of a rapprochement between the warring parties on the financial markets, thus increasing investors’ willingness to take risks again. A few days earlier, the price had fallen near the $1.08 mark to its lowest level since May 2020 due to the military conflict.
The talks, which were interrupted on Monday, continued, according to information from Kyiv. However, in a telephone conversation with EU Council President Charles Michel, Russia’s President Vladimir Putin criticized the behavior of the Ukrainian side in the ongoing negotiations. Putin said “that Kyiv is not showing a serious attitude towards finding mutually acceptable solutions,” according to a Kremlin statement on Tuesday evening.
Meanwhile, economic data from Germany, among others, hardly weighed on the euro. In March, the ZEW Indicator of Economic Sentiment fell more sharply than at any time since the survey began in the early 1990s. “The war in Ukraine and the sanctions against Russia are significantly worsening the economic outlook for Germany,” said ZEW President Achim Wambach. At the same time, inflation expectations rose sharply.
A similar picture emerged in the USA. The mood in industry in the New York region has surprisingly and clearly clouded over. The Empire State Index fell to its lowest level since May 2020. This was at the beginning of the corona pandemic in the United States. At the same time, producer prices rose again significantly. Observers expect that the US Federal Reserve will raise its key interest rate this Wednesday in view of the recently very high inflation./tih/jha/