Euro-dollar exchange rate: That’s why the euro has fallen to its lowest level against the dollar since early April

In European business, the common currency euro had cost 1.0810 US dollars at a low and thus as little as at the beginning of April. Most recently, the price recovered somewhat to $ 1.0838. The European Central Bank (ECB) had set the reference rate at 1.0829 (Tuesday: 1.0881) dollars.

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The markets continue to focus on the faltering hike in the US debt ceiling. So far, Democrats and Republicans have not been able to agree on a joint approach. Economists warn that the talks will fail as the US is threatened with defaults. Because of the dominant role of the dollar in the world monetary system, serious upheavals could result. Recently, however, there have been hopes that the disputing parties will come closer, which has benefited the US currency.

Inflation data from the euro zone meanwhile painted the familiar picture: inflation has risen again slightly recently, while the less fluctuating core inflation – minus price-volatile goods such as energy or food – fell slightly. Further hikes are expected from the ECB, which has been fighting high inflation with interest rate hikes since last summer. However, it is not entirely clear to what extent the monetary watchdogs will raise their key interest rates. Especially since other major central banks such as the American Federal Reserve are heading for an interest rate pause.

NEW YORK (dpa-AFX)

Image sources: Joachim Wendler / Shutterstock.com, Nomad Soul / Shutterstock.com

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