The euro rallied this week against the dollar, ending the day on Friday with a high of $1.448 to €1, according to figures posted by the Wall Street Journal (WSJ).
At the start of the day, €1 was worth $1.144 but this rose quickly to $1.1465 – a weekly increase of 2.8% which is its highest since March 2020, Belga News Agency reported.
This latest rise comes during a turbulent period for the currency markets; only last week, the euro was at its lowest level since June 2020, worth only $1.1132.
The euro’s rise may come as a surprise given that the European Central Bank (ECB) chose not to increase its rates in a meeting on Thursday. This is despite both the Bank of England (BoE) and U.S. Federal Reserve announcing rate increases.
However, despite ruling out any rate changes in 2022, ECB President Christine Lagarde admitted at a press conference on Thursday that “the situation has changed” and that rates would be adjusted if there is a clear need.
“We need to assess the situation on the basis of the data, and then we will have to take a judgement” on rates, she said in response to journalists’ queries.