The euro exchange rate held gains against the dollar on Thursday in late forex trading in the United States.
Most recently, the common currency cost EUR 1.0952, significantly more than the daily low of European trade of $ 1.0835. The European Central Bank (ECB) had set the reference rate at $ 1.0876 (Wednesday: 1.0842). The dollar had thus cost 0.9195 (0.9223) euros.
The euro exchange rate was boosted by a billion dollar loan program from the US Federal Reserve, with which it intends to support domestic companies in the virus crisis. Even more companies should now have access to new loans to compensate for crisis-related loss of revenue. The US dollar came under pressure because the move was essentially a monetary easing.
The ECB had previously followed up on its credit programs to contain the corona consequences. After her interest rate meeting, she announced that she would launch a new long-term loan program and discount the terms of an existing program. ECB President Christine Lagarde said the euro zone could shrink by between five and twelve percent this year due to the virus crisis. That would be a much more severe slump than during the financial crisis a good decade ago.
Growth data from the Eurozone already reflect the drastic effects of the corona restrictions. In many euro countries and in the euro zone as a whole, the economy shrank massively in the first quarter, sometimes even at a record pace, as can be seen from Thursday’s figures. There is no improvement in sight, on the contrary: an even more severe economic downturn is expected in the second quarter because the restrictions on public life are likely to fall during this period in particular.
/ bek / he
NEW YORK (dpa-AFX)
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