The euro falls to a five-year low – the US dollar benefits from a low level

The economic consequences of the war in Ukraine are also affecting the euro. The currency reaches its lowest level in the last five years – the US dollar will benefit in particular.

The euro extended its recent losses on Wednesday, falling to a five-year low against the US dollar. The common currency fell to $ 1.0634 on Wednesday night. This is the lowest level since April 2017.

The two-year low recorded the day before was slightly lower. The European Central Bank (ECB) set the benchmark rate at $ 1.0674 on Tuesday afternoon.

Expectations of a much tighter monetary policy in the US have been putting pressure on the euro for some time. This strengthens the US dollar against many currencies.

The consequences of the war in Ukraine weigh on the euro

Added to this are the economic consequences of the war in Ukraine, which according to many experts will affect Europe more than the United States. This implies an additional burden for the euro.

Little economic data is expected for the middle of the week. Consumer sentiment indicators from Germany and France should be attractive. Among the major central banks, ECB president Christine Lagarde and ECB chief economist Philip Lane want to speak.

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