Tuesday , July 27 2021

That is why the euro falls to its lowest point since June 2017 – also to the 25/4/19 franc



On Thursday, the euro exchange rate was put under new strain.

In the middle of the day, the common currency traded at 1.1129 dollars. This is the lowest level since June 2017. In the morning it cost 1,1162 dollars.

At 1,377 euros it is also slightly lower than the Swiss franc. The dollar traded at narrow margins against the franc and remained above the 1.02 franc mark. As a result, the dollar remains at its highest level for more than two years.

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Still on Wednesday, disappointing economic data from the eurozone had a negative impact. Since the beginning of the week, the euro has fallen by more than one dollar. No important economic data from the eurozone was published on Thursday. Only in the afternoon, data on new orders in the United States could give a new impetus to the forex market.

There were also big losses for the Swedish krona. The country's central bank has worsened speculation with another interest rate hike later this year. In Sweden, key interest rates for "longer time" remain at the current level, as promised in February, the central bank said. The next increase in interest rates was promised by monetary authorities at the end of the year or early 2020. Earlier, monetary authorities signaled an increase in interest rates for the second half of 2019.

By contrast, the yen has hardly responded to the central bank's monetary policy decisions. Despite the prospect of further extremely low interest rates, the Japanese currency has entered the auction of the dollar.

"The yen is not impressed, which is a sign that the market does not attach importance to these measures," commented Antje Praefcke, the currency expert at Commerzbank. In Japan, the effect of additional expansive measures is "simply limited after years of ultra-expansive monetary policy."

/ JSL / JKR / JVR / before / kw

FRANKFURT (awp international)

Source: Keystone, Ventura / Shutterstock.com, Beat Bieler / Shutterstock.com, qvist / Shutterstock.com


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