Gloomy sentiment: Euro extends losses after falling to 5-year low | news

In the daily low, the euro slipped to USD 1.0354, the lowest level since the beginning of 2017. In European currency affairs, the dollar had already fallen below the USD 1.04 mark. The European Central Bank set the reference rate at 1.0408 (Wednesday: 1.0553) dollars. The dollar therefore cost 0.9608 (0.9476) euros.


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Expectations of further strong interest rate hikes in the US supported the dollar. In the United States, the upward trend in producer prices eased slightly, but from a very high level. According to the Labor Ministry, producer prices rose 11.0 percent in April compared to the same month last year. The March increase of 11.5% was the highest increase since the survey began in 2010. Analysts had expected a sharper decline in April.

Due to high inflation, the Fed significantly raised the benchmark interest rate for the second consecutive time last week. It also announced further rate hikes. The inflation rate dropped only slightly in April and was still above 8%. Higher interest rates make a currency more attractive to investors.


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