FRANKFURT (dpa-AFX) – The euro came under pressure on Tuesday and fell below the $1.14 mark. In the morning, the common currency cost a low of 1.1385 dollars and thus as little as it was last just under a week ago. During the night the euro was still well above 1.14 dollars. The euro was able to recover somewhat in the morning. The European Central Bank (ECB) set the reference rate at $1.1403 on Monday afternoon.
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In contrast to the euro, the dollar appreciated against many currencies. The trigger was a sudden increase in capital market interest rates in the USA. The background to this is increasing speculation that the US Federal Reserve will raise interest rates as a result of high inflation. The markets are currently expecting the Fed to raise interest rates up to four times in the current year. Also under consideration is the possibility that the Fed could soon scale back its balance sheet, which has ballooned to about $8.8 trillion.
In terms of economic figures, the economic expectations of the Mannheim institute ZEW are on the program in Germany. Experts expect the leading indicator to rise moderately. Sentiment data from industry and the real estate market are expected in the USA./bgf/eas