The euro rate
The euro exchange rate picked up significantly from noon and rose in all major currencies. Increasing tensions between the United States and China caused uncertainty on the markets. The United States has ordered the Chinese consulate to be closed in the Texas city of Houston. However, it was not the dollar but the euro that benefited from the development, as is often the case during periods of uncertainty. Apparently, confidence in the euro has grown after the agreement at the EU summit.
The euro had already risen sharply on Tuesday and had risen by around one US cent. Market watchers justified the profits with the agreement of the EU heads of state and government on a huge financial package. From the perspective of Federal Minister of Finance Olaf Scholz, the assumption of common debts by the EU states to deal with the corona crisis is changing the political statics in Europe. “With this decision, Europe takes responsibility for its fate together,” said the SPD politician of the “time”.
According to experts, the US economy continues to suffer from the high number of infections in the USA. “The crisis is far from over there and will leave a significant brake on the economy,” commented Antje Praefcke, foreign exchange expert at Commerzbank. Everything currently looks a little better for the euro than for the dollar. “One to zero for the euro in the fight against the virus and the recession,” said Praefcke.
For other major currencies, the ECB set the reference exchange rate for one euro at £ 0.91123 (0.90055), £ 123.94 (122.70) Japanese yen and 1.0785 (1.0740) Swiss franc. The troy ounce of gold (31.1 grams) was traded in London in the afternoon at $ 1857. That was about $ 15 more than the day before./jsl/bek/he
ISIN EU0009652759
AXC0269 2020-07-22/16:57
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