Euro exchange rate rises after Fed decisions

Euro exchange rate rises after Fed decisions

Following the US Federal Reserve's monetary policy decisions, the euro exchange rate rose on Wednesday. The euro was last trading at $1.070, having previously hit an intraday low of $1.0650. The key interest rates have not been changed and remain in the range between 5.25 percent and 5.50 percent. The US Federal Reserve continues to view a reduction in key interest rates as inappropriate as long as sustained inflation towards the two percent target has not been achieved. Despite a decline in inflation last year, it remains at a high level.

Speculation about interest rate cuts later in the year was dampened by stubborn inflation and robust economic development in the USA. The Fed appears to be cautious and will probably not intervene until the economic situation requires it. The euro exchange rate reacted positively to the US Federal Reserve's decisions, which led to an increase against the US dollar. Investors closely monitor monetary policy developments to assess possible impacts on foreign exchange markets.

The image sources for the article are 123RF, Valeri Potapova / Shutterstock.com, qvist / Shutterstock.com and Powerphotos / Shutterstock.com. It remains to be seen how exchange rates will develop in the coming days and weeks as they are heavily influenced by international events and economic indicators. The decisions of major central banks such as the US Federal Reserve have a significant impact on currency markets and require close monitoring by investors and analysts.