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Börse Express – Forex: Euro rises after US interest rate hike

New York (dpa-AFX) – Euro The US Federal Reserve was higher against the US dollar in late trade on Wednesday following another rate hike. Most recently, the common currency was quoted at $ 1.0430. As soon as the interest rate was decided, the common currency fell to a daily low of $ 1.0359, but recovered again. The European Central Bank previously set the reference rate at $ 1.0431 (Tuesday: 1.0452). Thus the value of the dollar is 0.9587 (0.9568) euros.

The US Federal Reserve has sharply raised its key interest rate. The central bank announced in Washington on Wednesday that interest rates have risen by 0.75 percentage points to 1.5 to 1.75 percent. Most analysts expected the 0.5 percent point to tighten. However, many observers have predicted a bigger step as well. However, central bank chairman Jerome Powell said a 0.75 percentage point rise should not be the norm. The euro can benefit from this.

Against the backdrop of significant austerity lies the high level of inflation, which has now risen for more than 40 years. The central bank has already raised interest rates by 0.5 percentage points in May and 0.25 percentage points in March.

“The US Federal Reserve has been acting late, but is now violent to high inflation with rising interest rates,” wrote Michael Hayes, an economist at HQ. After a long period of hesitation, the big tariff hike is a clear signal that the central bank is now pursuing its stability target vigorously. As a result, the US economy is likely to weaken significantly and unemployment is likely to rise slightly. But there will be no severe recession./bek/he

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AXC0321 2022-06-15 / 21: 01

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