FRANKFURT (dpa-AFX) – The euro fell on Thursday due to the high degree of uncertainty on the financial markets. At midday, the common currency was trading at $1.0415. In the morning she had quoted even higher. The European Central Bank (ECB) had set the reference rate at $1.0431 on Wednesday afternoon.
The Swiss National Bank (SNB) with its clear rate hike the financial markets unsettled. The central bank increases the key interest rate by 0.50 percentage points to minus 0.25 percent. The currency holders want to counteract the inflationary pressure with this, the SNB said on Thursday. Most economists had not expected the increase. As a result, the Swiss franc appreciated noticeably against all major currencies. The decision also brought the stock and bond markets into the euro zone under pressure, which also put the euro under pressure against other currencies.
The euro is being weighed down by strong concerns about the energy supply. As announced on Thursday night, the Russian energy company Gazprom further reduced its gas deliveries to Germany through the Nord Stream Baltic Sea pipeline. In addition, the Italian energy supplier ENI reported that gas deliveries from Russia to Italy have been reduced. European gas prices rose by over 22 percent. Europe is particularly dependent on Russian energy.
The British pound, meanwhile, has come under pressure against the euro and dollar. As expected, the central bank raised the key interest rate by 0.25 percentage points to 1.25 percent. This was what economists expected. Apparently, however, some financial market players were expecting a stronger increase.
The evening before, the financial markets had reacted calmly to the interest rate hike by the US Federal Reserve. The Fed raised interest rates by 0.75 points. This was the largest interest rate step since 1994. Although a majority of the experts assumed a step of only 0.50 points, a larger step had already been priced in on the financial markets./jsl/stk