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  • Currency Buzz: Euro Hits Six Week High Against US Dollar, Lagarde Remarks On Rate Hike In Focus
  • March 23,2023  11:33
  • The Euro stayed broadly supported against the US dollar in Asia today as markets eyed the latest developments from key central banks associated with the currency pair. The US Federal Reserve hiked interest rates by 25 basis points and acknowledged the current banking crisis will lead to tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. While the Fed rate decision was largely on expected lines, the central bank has not given a clear guidance on near term monetary policy trajectory.

    Meanwhile, the European Central Bank ECB President Christine Lagarde has warned on risks posed by high inflation and signaled that they are not done with raising interest rates. She noted that we are neither committed to raise further nor are we finished with hiking rates. This mention of “rate hike” in her comments has kept the single currency supported against the US dollar as Euro hit a six week high near 1.10 against the dollar. The US dollar index has slipped under 102 mark, seeing sustained losses after the Fed decision.

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