The euro stabilized somewhat on Wednesday.
In New York trading, the euro common currency last cost 1.1634 US dollars. The European Central Bank had set the reference rate at 1.1600 (Tuesday: 1.1620) dollars and the dollar therefore cost 0.8620 (0.8605) euros.
The significantly lower oil prices supported the euro. The Iran war and the prices for the important raw material remain the dominant topics on the markets. According to US President Donald Trump, negotiations with Iran are in the “final phase”. However, a sustainable opening of the Strait of Hormuz, which is particularly important for energy transport, is not yet in sight.
Concerns about inflation in the bond markets have recently increased. In Germany, producer prices rose in April more than ever in two years due to the consequences of the Iran war – and more significantly than economists expected. In the Eurozone According to a second estimate, the inflation rate rose to 3.0 percent last month. The ECB is aiming for an inflation rate of two percent in the medium term. The expectation that the ECB would raise key interest rates in May recently prevented significant losses for the euro.
NEW YORK (dpa-AFX)