Foreign exchange: Euro continues to fall – Swiss franc in demand

FRANKFURT (dpa-AFX) – The euro came under pressure again on Monday in view of the intensified war in Ukraine. At the low, the common currency fell to $ 1.0802, its lowest level since May 2020. During the night it was still above $ 1.09. The European Central Bank (ECB) set the reference rate at $1.0929 on Friday afternoon.

Russia’s war against Ukraine is increasing uncertainty on the markets. An end to the hostilities is not in sight. US Secretary of State Antony Blinken also brought up an import ban on Russian oil. Washington is discussing such a sanction with European allies. According to government circles, Japan is also considering the move, as reported by the Japanese news agency Kyodo.

The aggravated situation is also likely to weigh heavily on the economy in the euro zone. The economic sentiment in the euro zone measured by the consulting firm Sentix collapsed in March due to the Ukraine war. The slump was also much more severe than experts had expected. Investor expectations came under particular pressure. They fell more sharply than at any time since the indicator began to be surveyed.

In this environment, currencies perceived as safe, such as the US dollar, the Japanese yen or the Swiss franc, were in demand. In return, for the first time since 2015, less than one Swiss franc had to be paid for one euro.

The Russian ruble again lost value, falling significantly against the dollar and the euro. However, some Eastern European currencies such as the Polish zloty and the Hungarian forint also came under severe pressure. Both currencies fell to a record low against the euro./jsl/bgf/mis

ttn-28