Currency Buzz: Euro Weakens To 2-Year Low

25 Apr 2022 , 02:27 PM

The euro resumed its downtrend against the US dollar after a brief respite early in the day from pro-EU centrist Emmanuel Macron re-election as Frances president. The single common currency weakened to below $1.075 and hit a fresh two-year low against the greenback. The euro, along with most of its major peers, has been bruised by an upward march by the dollar. The US Dollar Index, which tracks the greenback against a basket of other currencies climbed to a two-year peak of 101.37 on Monday morning. Although benchmark treasury yields paused rally, dollar continued to extend advance as investors opted for safe haven amid rising China Covid cases and ensuing strict COVID-19 measures and lockdowns across the country, worsening economic growth outlook. Meanwhile, Federal Reserve Chair Jerome Powell indicated that a half-point interest rate increase ?will be on the table? when the Fed meets in May to approve the next in what is expected to be a series of rate hikes this year.

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