Euro falls to 20-year low

Frankfurt/Main (dpa) – The euro is still under pressure on the financial markets. On Thursday night, the common currency fell to $ 0.9809, its lowest level in about 20 years. The European Central Bank (ECB) had set the reference rate a little higher on Wednesday afternoon at $0.9906.

Like many other currencies, the euro is being weighed down by the strong dollar. On the one hand, the US currency is benefiting from the tight monetary policy of the US Federal Reserve, which raised its key interest rate sharply by 0.75 percentage points for the third time in a row on Wednesday evening. The background is the very high inflation. On the other hand, the dollar is in demand because of the increasingly gloomy geopolitical situation. Above all, the poor relationship between the West and Russia is driving investors to the safe haven of the US dollar.

The Japanese yen was also under pressure in the morning. The central bank of the world’s third largest economy is sticking to its loose line, as the Bank of Japan announced. Inflation in Japan is significantly lower than in other countries. However, it is increasing and is relatively high, at least by Japanese standards. However, the central bank is making no move to tighten its extremely loose monetary policy, which has weighed heavily on the yen for months.

© dpa-infocom, dpa:220922-99-854725/2

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