The value of the euro once morest the dollar on Thursday exceeded the threshold of 1.10 ‘green bills’, thus reaching its best cross in a year once morest the US currency given the expectation that the world’s leading economy will weaken throughout the year until it even fell into recession, leading the Federal Reserve to interrupt the upward path of interest rates.
euro revaluation
Specifically, the community currency reached an exchange rate of $1.1032, the highest since the beginning of April 2022, which represents a revaluation of 0.4% compared to Wednesday’s close and 3% since the beginning of the year.
According to the minutes of the last meeting of the Fed, andhe US central bank has started to include among its forecasts the possibility of a recession throughout this year, following the recent financial turmoil, with a subsequent recovery in activity during 2024 and 2025.
This is the first time in the current cycle of Fed rate hikes that the institution chaired by Jerome Powell contemplates the risk of recession in its macroeconomic projections, which might lead the entity to conclude the tightening phase of monetary policy sooner than previously expected.
