The euro hovered around the $1.08 mark in US trading on Friday.
The common currency, the euro, was trading at $1.0809 on Wall Street about an hour before the market closed. In early trading in Europe, it hit its lowest level since mid-June at $1.0766 after weak economic data. The European Central Bank set the reference rate at 1.0808 (Thursday: 1.0840) dollars. The dollar thus cost 0.9252 (0.9225) euros.
Advertising
Trade EUR/CNY and other currencies with leverage via CFD (long and short)
Trade currency pairs like EUR/CNY with leverage at Plus500 and participate in rising and falling prices.
Plus500: Please note the Hints5 to this advertisement.
A further gloomy outlook for the German economy weighed on the euro. The Ifo business climate had fallen for the fourth month in a row and to its lowest level since October 2022. “The German economy is being passed down further,” commented Ulrich Kater, chief economist at Dekabank. “The rather temporary burdens on demand caused by inflation and rising interest rates come up against structural problems in Germany as a business location, such as too much bureaucracy or high energy prices.”
Meanwhile, Federal Reserve Chair Jerome Powell has left the door open for further rate hikes. “The Federal Reserve is poised to raise interest rates further if needed,” Powell said at the Jackson Hole Fed conference. Borrowing costs will be kept high until inflation is on a sustainable path towards the inflation target. Powell’s statements gave no clear direction to the forex market. The euro briefly appreciated against the dollar, but then quickly came under pressure again.
NEW YORK (dpa-AFX)