Euro exchange rate falls below $1.07 according to US economic data

Euro exchange rate falls below $1.07 according to US economic data

The euro exchange rate fell below the $1.07 mark after the publication of US economic data. On Friday, the price reached a daily low of $1.0689, after starting the day at $1.0730. The European Central Bank set the reference rate at $1.0714, with one euro costing $0.9333.

The price data and speculation about an eventual Fed rate cut supported the dollar while putting pressure on the euro. In March, US price inflation exceeded expectations, with the PCE price index rising 2.7 percent and core inflation coming in at 2.8 percent, excluding energy and food.

U.S. consumers' inflation expectations have also risen, with expected inflation rising to 3.2 percent in April. The Fed takes this expectation into account in its monetary policy, aiming for an inflation rate of two percent. Despite expectations of unchanged key interest rates at the Fed's next interest rate meeting, a rate cut is not expected until late summer due to ongoing inflation.

The European Central Bank also set reference rates for other important currencies: one euro was equivalent to 0.85643 British pounds, 168.03 Japanese yen and 0.9779 Swiss francs. Gold prices were at $2,338 an ounce in London, up about $5 from the previous day.