The euro slightly reduced its loss from European business in US trading on Monday.
The renewed uncertain situation in the Iran war had pushed the common currency, the US dollar, down to a daily low of 1.1611 US dollars. Then comments from US President Donald Trump brought some relief. Most recently, the price was still below Friday’s level at $1.1634. The European Central Bank set the reference rate at 1.1646 (Friday: 1.1644) dollars. The dollar therefore cost 0.8586 euros.
In the negotiations to end the Iran war, there have been more setbacks recently – and so the dollar was initially in demand as the world’s reserve currency. After US bombings at the weekend, the Iranian Revolutionary Guards reported a retaliatory strike. In addition, an Iranian news agency said that exchanges with the USA would be stopped in protest against a further escalation of the situation in Lebanon.
However, Trump later announced that Israel and the pro-Iranian Hezbollah militia would initially stop their attacks on each other in Lebanon. He also wrote on the Truth Social platform that negotiations between Washington and Tehran for a possible framework agreement in the Iran war were continuing at a “fast pace.” Investors saw this as a reassuring signal.
Fresh economic signals were also evaluated. While the industrial mood in the Eurozone Although a second estimate in May showed that the situation was less cloudy than expected, it has surprisingly brightened significantly in US industry. According to analyst Constantin Lüer from NordLB, the American Purchasing Managers’ Index rose to 54 points, underlining “the continued robust condition of US industry.”
NEW YORK (dpa-AFX)