FRANKFURT (dpa-AFX) – The euro stabilized on Tuesday after losses the previous day. The common currency last cost 1.1706 US dollars. In the morning it was quoted a little lower. The European Central Bank set the reference rate at 1.1686 (Monday: 1.1700) dollars. The dollar therefore cost 0.8557 (0.8547) euros.
The news about the Iran war continues to be essential for market events. Investors weigh up what influence they have on the growth and inflation prospects and thus on the monetary policy of the central banks. The dispute over the blocked Strait of Hormuz, which is very important for world trade, is currently endangering the ceasefire between the USA and Iran. On Tuesday the situation calmed down somewhat.
The economic data published in the USA in the afternoon hardly moved the market. The mood in the service sector deteriorated somewhat in April. However, the value remains at a high level and signals growth in the sector.
“This development should encourage the US Federal Reserve not to be in a hurry to cut interest rates,” Ulrich Wortberg, an analyst at Helaba, commented on the data. “The increased energy costs as a result of the Iran war also speak for this.”
For other important currencies, the ECB set the reference rates for one euro at 0.86343 (0.86358) British pounds, 184.42 (183.83) Japanese yen and 0.9165 (0.9173) Swiss francs. A troy ounce of gold (around 31.1 grams) last cost $4,580. That was a good 59 dollars more than the day before./jsl/he
