In a daily low, the euro slipped to USD 1.0354, its lowest level since the beginning of 2017. In European currency trading, the dollar had already dropped below the $1.04 mark. The European Central Bank set the reference rate at $1.0408 (Wednesday: 1.0553). Thus the dollar is worth 0.9608 (0.9476) Euro.
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The dollar has been supported by expectations of a further hike in interest rates in the US. In the United States, the upward trend in prices at the producer level has weakened somewhat, but from a very high level. According to the labor ministry, producer prices increased by 11.0 percent in April compared to the same month last year. The 11.5 percent increase in March was the highest increase since the survey began in 2010. Analysts were expecting a sharp drop in April.
Sensing high inflation, the Fed raised its key interest rates significantly for the second time in a row last week. He has also announced further hike in rates. Inflation fell marginally in April and was still above eight per cent. Higher interest rates make the currency more attractive to investors.
New York (DPA-AFX)
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