Euro exchange rate rises to its highest level since mid-March

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Euro exchange rate rises to its highest level since mid-March





© dpa
Much of the world’s transactions are processed in the two currencies.


Investors hope to expand the ECB’s buying program on Thursday. The protests in the United States and the conflict with China weaken the dollar.

The euro rose above $ 1.12 on Wednesday. The European common currency was traded at $ 1.1212. This is the highest level since mid-March.

During the night, the euro was still trading significantly below the $ 1.12 mark. The European Central Bank (ECB) had set the reference rate on Tuesday at $ 1.1144 (Monday: $ 1.1166).

Observers point to broad dollar weakness. Confidence in the financial markets would dampen demand for the world’s leading currency.

The fall in the dollar’s price is apparently not only due to the friendly mood on the financial markets. “The conflict between the United States and China as well as ongoing protests in many cities in the United States take their toll, ”said the analysts at Landesbank Hessen-Thüringen (Helaba).

In addition, investors would hope that the ECB is expanding its bond purchase program (PEPP) launched in the Corona crisis this Thursday. So far, PEPP has a volume of 750 billion euros.

More: The Governing Council’s meeting next Thursday will primarily be about buying government bonds. A significant increase is expected.

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