The Euro falls against the dollar, which peaked due to the hope of an increase in interest rates
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    The Euro falls against the dollar, which peaked due to the hope of an increase in interest rates

    ©Belga
    ©Belga

    The Euro fell against the dollar on Thursday. The dollar has been reinvigorated by the American Federal Reserve’s (Fed) summary, which does not exclude an increase in interest rates in June. Around 6am GMT (8am in Paris), the European currency was worth 1.0754 dollars, compared to 1.0780 dollars at around 9pm GMT on Wednesday. The European currency also fell compared to the Japanese currency. It is now worth 129.39 yens, compared to 129.52 yens on Wednesday. The dollar has also gone up against the Japanese currency, to 120.32 yens (120.14 yens the day before).

    According to analysts, the minutes of the Currency Policy Committee on the 17th and 18th of March show that the Fed is undecided on increasing interest, which are the lowest in six years. It will depend on economic statistics.

    The minutes revealed that three weeks ago, several members of the Fed thought that the economic situation justified an increase in interest rates in June. This was even though “other” participants considered that “the fall in energy prices and the growth of the dollar could increase inflation in the short term”, which would justify delaying the interest increase. For analysts, the tone of the discussions was more favourable to an interest increase than many were expecting. Which is good for the dollar.

    Elsewhere, investors are monitoring the situation in Greece, as Athens has promised to honour its debt of 460 million euros to the International Monetary Fund (IMF) on Thursday.

    Greece is waiting for the transfer of a last aid installment of 7.2 billion euros from the EU, which is part of a 240 billion euro aid packet it has been receiving from Europe and the IMF since 2010.

    Jason Bennett (Source: Belga)