NEW YORK (dpa-AFX) – The euro was weighed down somewhat on Tuesday by inflation data from the USA. After slipping to 1.0902 US dollars, the common currency was able to make up some ground again. In New York trading, 1.0920 dollars were recently paid for one euro. The European Central Bank (ECB) had set the reference rate at 1.0916 (Monday: 1.0926) dollars and the dollar therefore cost 0.9160 (0.9152) euros.
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US consumer prices for February showed a surprising acceleration in price inflation. Analysts, however, had expected the inflation rate to remain unchanged compared to the previous month. In contrast, the core inflation rate fell – although not as significantly as forecast.
The core inflation rate is for the monetary policy particularly important to the US Federal Reserve Bank. In the opinion of experts, it reflects the general price trend better than the overall rate, as components that are susceptible to fluctuations such as energy and food are excluded.
The financial markets are largely expecting interest rate cuts from June this year. Fed officials have recently dampened expectations. They first want to wait and see how inflation develops. A first Interest rate cut Before the middle of the year, “it should now finally be off the table,” wrote Dirk Chlench, economist at Landesbank Baden-Württemberg. However, many investors in the market still assume that the long-awaited turnaround in monetary policy will come in June. Lower interest rates tend to reduce the attractiveness of a currency as an investment./gl/jha/