NEW YORK (dpa-AFX) – The euro exchange rate recovered somewhat in late currency trading in the US on Thursday. At $ 1.1055, the single currency recently moved above the daily low below 1.1040 in late European currency business. The European Central Bank (ECB) had set the reference rate at $ 1.1091 (Wednesday: 1.1088). The dollar had thus cost 0.9016 (0.9019) euros.
The ECB has its own monetary policy not changed as expected. The monetary authorities keep the key interest rate in the euro area at a record low of zero percent. Banks must continue to pay 0.5 percent interest when parking funds with the ECB. In addition, the central bank plans to spend EUR 20 billion a month on bonds for an indefinite period. In addition, the ECB president resigned Christine Lagarde a comprehensive review of the central bank’s monetary policy strategy, which is expected to be completed by the end of the year.
The euro was hit somewhat by the crisis of the Italian government. Foreign Minister Di Maio resigned from the top of the ruling five-star movement on Wednesday. The stars are in a coalition with the Social Democrats. The party faces a debacle in the regional elections in Emilia-Romagna and Calabria on Sunday. Should Lega boss Matteo Salvini’s legal alliance win the elections, this will also make the conflicting government alliance in Rome more difficult. Italy is the third largest economy in the euro zone, The country is suffering from sustained weak growth and high public debt.
The Japanese yen rose significantly. Concerns about the consequences of a new lung disease increased on the financial markets. The Chinese government has practically sealed off the metropolis of Wuhan, where the coronavirus originally broke out. The Japanese yen is considered a safe investment port and is currently in increasing demand from investors
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