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The euro exchange rate maintained gains against the dollar on Thursday in the latest exchange operations in the United States.
More recently, the common currency cost 1.0952 euros, significantly more than the European trade daily low of $ 1.0835. The European Central Bank (ECB) had set the benchmark rate at $ 1.0876 (Wednesday: 1.0842). The dollar had cost 0.9195 (0.9223) euros.
The euro exchange rate was fueled by a $ 1 billion loan program from the United States Federal Reserve, with which it intends to support national companies in the virus crisis. Even more companies should now have access to new loans to make up for the crisis-related loss of revenue. The US dollar was under pressure because the move was essentially a monetary easing.
The ECB had previously followed its credit programs to contain the consequences of the crown. After their interest rate meeting, they announced that they would launch a new long-term loan program and discount the terms of an existing program. ECB President Christine Lagarde said the euro zone could shrink by five to twelve percent this year due to the virus crisis. That would be a much more severe depression than during the financial crisis of a good decade ago.
Euro zone growth data already reflects the drastic effects of crown constraints. In many euro countries and the euro area as a whole, the economy contracted massively in the first quarter, sometimes even at a record pace, as can be seen from Thursday’s figures. On the contrary, there is no improvement in sight: an even more severe economic downturn is expected in the second quarter because restrictions on public life are likely to drop during this particular period.
/ bek / he
NEW YORK (dpa-AFX)
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