Forex: Euro continues to rise versus US dollar after yesterday’s gains

NEW YORK (dpa-AFX) – The euro rose a little further in New York trading on Tuesday. Just below 1.0750 US dollars, the end of the flagpole was reached as on the previous day. Most recently, the common currency cost $ 1.0738. The European Central Bank (ECB) had set the reference rate at 1.0737 (Monday: 1.0706) dollars and the dollar thus cost 0.9314 (0.9341) euros.

The latest US inflation data did not move the currency market sustainably. In February, consumer prices rose by only an expected six percent year-on-year, the lowest increase since September 2021. However, the core rate fell only slightly to 5.5 percent. It is considered to be particularly meaningful, since food and energy prices that are susceptible to fluctuations are eliminated.

This means that there is no longer any need for the US Federal Reserve to accelerate the pace of interest rate hikes, stressed economist Thomas Gitzel from VP Bank. The Fed will raise interest rates by 0.25 percentage points at next week’s meeting. “It’s over after that,” he expects. After the recent turbulence in the US banking sector, the analysts at the Japanese financial group Nomura are even expecting a key rate cut of 0.25 percentage points./gl/jha/