Euro recovers and returns to trade above one dollar – Economy

At 18:04 (Lisbon time), the euro was trading at 1.0054 dollars, while on Thursday, at the same time, it was at 0.99704.

This month the euro had not yet traded above the dollar.

The European Central Bank (ECB) has set the euro’s reference exchange rate at 1.0049 dollars.

In today’s session, the euro fluctuated between a low of $1.0008 and a high of $1.0111.

ECB President Christine Lagarde defended today that governments guarantee liquidity to solvent companies in the energy sector to avoid bankruptcies and maintain financial stability.

“In the current very volatile context, it is important that fiscal measures are implemented to provide liquidity to solvent companies in the energy market, in particular public utility companies”, said Lagarde at a press conference after a meeting of Eurozone Ministers of Economy and Finance. (Eurogroup) in Prague.

Lagarde clarified that the ECB and central banks cannot provide liquidity to these companies, but only to banks that participate in clearing mechanisms for energy companies.

Also today, the European Commission promised “unprecedented measures for an unprecedented situation” in the European Union (EU) of energy crisis, which will cover “all fronts” and will be presented next week to alleviate the prices of energy services.

“We will propose unprecedented measures next week for an unprecedented situation,” European Energy Commissioner Kadri Simson said today, speaking at a press conference at the end of an extraordinary meeting of European ministers in charge in Brussels.

On Thursday, the chairman of the US Federal Reserve (Fed), Jerome Powell, reaffirmed his intention to keep interest rates high for as long as necessary to control inflation.

Powell’s remarks came after the European Central Bank (ECB) announced that it had decided to raise its three key interest rates by 75 basis points, the second consecutive increase this year.

Cited by the Associated Press (AP), the chief economist at ACY Securities, Clifford Bennett, argued that “it may be wiser to keep rates at slightly stimulating levels”, given the impact of the energy crisis, war and inflation on life. of people.

Currencies……today……………Thursday

Euro/dollar ……….1.0054……………..0.99704

Euro/pound …………0.86696……………..0.86817

Euro/yen………….143.30……………….143.70

Dollar/yen ……….142.53………………144.14

PE (PD/AAT) // CSJ

Lusa/End

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