The euro shot up today and touched US$ 1.10, its highest since the beginning of February, after publishing the drop in inflation in the United States in March, which was higher than expected and therefore the Federal Reserve (Fed) does not need be so aggressive with your interest rates.
The euro was exchanged around 15:00 GMT at $1.0995, compared to $1.0917 in the last hours of European currency market trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0922.
The annual rate of inflation in the United States continued to decline in March, for the ninth consecutive month, and stood at 5%, one point below that of February and the lowest rate since May 2021.
In monthly terms, on the other hand, consumer prices rose one tenth in March (compared to the four tenths they rose in February).
In addition, core inflation, which measures the rise in consumer prices minus food and energy prices, the most volatile, rose four tenths in March and placed its interannual rate at 5.6%.
Despite the fact that Underlying inflation increases, markets anticipate that the fed will raise its interest rates at most two more times by 25 basis points each.
Equities rose and sovereign debt yields fell sharply, especially bonds at the closest end of the curve, those with shorter maturities.
The Fed will publish this Wednesday the minutes of its March monetary policy meeting, in which it raised its interest rates by a quarter of a percentage point, to a range between 4.75 and 5%, and its president, Jerome Powell, he was cautious.
If the report maintains this cautious tone, the dollar could depreciate further.
The governor of the Bank of France, Francois Villeroy de Galhau, considered that inflation in the euro area may be more persistent than previously expected, especially core inflation, which is also rising in the countries that share the euro.
The single currency was exchanged in a fluctuation band between 1.0914 and 1.0998 dollars.
Source: EFE
Source: Gestion
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