Euro: Euro stops exchange rate losses

Euro and dollar bills

The majority of global transactions are processed in these two currencies.


(Photo: Reuters)

Frankfurt The euro stopped the losses of the past trading days for the time being on Tuesday. In the morning, the common currency was trading at $ 1.2154, roughly the same rate as the previous evening. The European Central Bank (ECB) last set the reference rate on Monday afternoon at $ 1.2163.

Since the middle of last week, the euro has lost around 1.5 percent of its value in trading with the dollar. The cause was a strength of the American currency, which in turn put the euro under pressure. One of the reasons for the dollar’s gain in value is the recent comparatively strong rise in yields on US government bonds.

American government bonds with a term of ten years are now trading with a yield of around 1.15 percent. For comparison: the ten-year Bund yield is significantly lower at minus 0.50 percent. In the further course of the day, trading on the foreign exchange market is expected to be rather weak. There is no important economic data on the program for investors to use.

More: Yields on US Treasuries at their highest level since the Corona crash

.

READ  Consumer advice center: Vodafone service providers should sign contracts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.