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Euro loses against dollar: rate falls below 1.07 US dollars
The euro falls below $1.07 on the market due to inflation data and expectations from the US Federal Reserve. Read more about the background here.
Euro loses against dollar: rate falls below 1.07 US dollars
The euro continued its downward slide on Friday and broke through the $1.07 mark. At the close of trading in New York, the common currency was at $1.0694. The European Central Bank had previously set the reference rate at $1.0714. Speculation about a later interest rate cut by the US Federal Reserve supported this development, which strengthened the dollar and put pressure on the euro.
In March, the US recorded a stronger than expected price increase, with the PCE price index rising to 2.7 percent and the core rate excluding energy and food coming in at 2.8 percent. This data could reinforce the US Federal Reserve's stance not to cut interest rates hastily. US consumers' recent inflation expectations have also risen, which could prompt consideration in the Fed's monetary policy.
No changes are expected for the Fed's upcoming interest rate decision, and the first rate cut is not expected until late summer at the earliest. One expert still believes that two such measures over the course of the year are realistic. The stubborn inflation in the USA and the increased expectations of consumers are reflected in the current development of the euro against the dollar. Until there is new stimulus, the euro's price will continue to be influenced by US inflation data and the Fed's decision.