NEW YORK (dpa-AFX) – The euro fell below the $1.16 mark on Wednesday for the first time since last Thursday. Most recently, 1.1597 dollars were paid for the European common currency in New York trading. The European Central Bank had meanwhile set the reference rate at 1.1614 (Tuesday: 1.1649) US dollars. The dollar therefore cost 0.8610 euros.
In European afternoon trading, robust US economic data supported the dollar. Before the official jobs report comes out on Friday, the service provider ADP announced that the US private sector created slightly more new jobs in May than expected. In addition, sentiment in the US services sector improved more than expected last month and industrial orders rose slightly more than expected in April.
Ralf Runde, economist at Helaba, sees an “economically stable situation” in the United States. “The US Federal Reserve should therefore see its assessment confirmed that interest rates should tend to be increased,” writes Wortberg. The majority of financial markets currently expect the US Federal Reserve to raise its key interest rates later in the year.
The euro was also impacted by the renewed rise in crude oil prices. Uncertainty about the war in the Middle East remains high. The US and Iran engaged in one of the heaviest firefights since the ceasefire began overnight. The Iranian attacks also targeted US military bases in the Gulf states of Kuwait and Bahrain. The US military, in turn, attacked a military facility on the island of Qeshm in the Strait of Hormuz./jsl/tih/he