Around 8:30 p.m., the euro lost 0.26% to 1.1297 dollars for one euro.
The euro retreated on Tuesday once morest a US dollar galvanized by the anticipated outcome of a meeting of the US Federal Reserve (Fed) and geopolitical risk.
Around 7:30 p.m. GMT, the euro lost 0.26% to 1.1297 dollars for one euro.
Earlier, in a context of very volatile markets, the greenback had risen to 1.1263 dollars for one euro, its highest for a month.
The Fed is expected to conclude its two-day monetary meeting on Wednesday and might prepare a rate hike as soon as its next meeting in March in order to fight inflation.
But following the prospect of multiple rate hikes this year rattled markets in recent sessions, “the Fed is likely to soften its stance, or at least refrain from looking too aggressive,” Ipek Ozkardeskaya said. analyst at Swissquote.
The euro is also suffering from tensions in Ukraine, while Washington announces that it has placed 8,500 soldiers on alert in the context of the Ukrainian crisis.
For Joe Manimbo of Western Union, “the Ukrainian crisis eclipses the good economic news from the European bloc”, with a German confidence index up unexpectedly, and weighs down the euro once morest the greenback.
The dollar is sought following as a safe haven, while the eurozone economy might be affected by disruptions in the natural gas market.
“A further rise in energy prices in the coming months would be the kind of temporary shock that the European Central Bank would ignore,” believing that the inflation created will not last, comments Holger Schmieding, analyst at Berenberg.
On the contrary, it might even try to support the economy by easing its policy, he warns.
Currency traders will monitor “the news in Ukraine, but also the dynamics of the equity markets in Europe and the United States”, notes Guillaume Dejean, the lack of appetite for risk being able to favor the dollar, the yen or the Swiss franc.
Bitcoin, which suffered from the return of caution in the market, recovered 1.58% to 37,409 dollars.
The cryptocurrency hit a six-month low of $32,970 on Monday.