One euro is now worth $0.9814, the lowest level seen since October 2002. The dollar also hit a record high against the pound sterling.
A level has been crossed, and this is not at all good news. The euro hit its lowest level in 20 years against the dollar on Wednesday 21 September. The statements of Vladimir Poutine, which brandished the nuclear threat, and the Fed’s announcements caused the European currency to plunge. Shortly after 6 p.m. GMT, the greenback (the dollar) reached 0.9814 dollars for one euro, for the first time since the end of October 2002, only a few months after the official changeover to the single currency.
The ‘greenback’, one of many nicknames for the dollar, also had a record high against the pound sterling since March 1985, at $1.1238 to the pound. The Fed raised its key rate by 0.75 percentage points on Wednesday, bringing it within a range of 3% to 3.25%.
The Federal Reserve’s announcement added to statements by the Russian President Vladimir Putinwhich had announced, earlier, the “partial” mobilization of some 300,000 Russian reservists and mentioned the use of nuclear weapons to “protect Russia”.
The general feeling that the conflict was escalating had already undermined all European currencies, first and foremost the euro, before the Fed dealt them another blow. “Concerns about a potential […] Read more
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