The euro falls today, Thursday, to its lowest value against the dollar for 20 years and stands at the level of 0.98 dollars, after the Federal Reserve (Fed) raised its interest rates by 75 basis points and will hint that it will increase them more this year and in 2023.
The euro was trading around 0730 GMT at $0.9833, down from $0.9891 in late trading. european forex market trading of the previous day.
The Fed raised its interest rates to place them in a range of between 3 and 3.25%, a decision that the markets had already discounted. But the US central bank’s rate forecasts are restrictiveand estimates an increase of another 125 basis points until the end of the year and another 25 basis points in 2023, reaching 4.6% (3.8% in the June projections).
Effects of the tension with Russia on the euro
Also, tensions with Russia over the war in Ukraine lead investors to avoid risk and buy dollarsconsidered a safe currency in times of crisis.
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