Currency Buzz: EUR/USD Slide Below 1.200 Mark

27 Jan 2022 , 03:35 PM

EUR/USD Slide Below 1.200 Mark EUR/USD depreciated to its lowest level in more than two months as dollar climbed to multi week highs boosted by prospects for faster and larger interest Fed rate hikes in the months ahead. The dollar index held above 96 against a basket of currencies, currently at 96.80, after the Federal Reserve left monetary policy unchanged, but said it would be appropriate to raise borrowing costs soon to tame inflation amid a strong labor market. The central bank also said it would be ending its bond purchases that month as well as start reducing its asset holdings significantly after the lift off in interest rates. The EURUSD pair languished below 1.200 mark and is currently quoting at 1.1197. The single currency was already under pressure this week after data pointed to a sharp slowdown in the Eurozones economic growth in January and as worries about a potential military conflict in Ukraine weighed on riskier currencies.

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