DEK: Euro hits one-year low against US dollar as ECB President Lagarde pushes back against additional monetary policy tightening. CATEGORY: Mercado Financeiro & Forex KEY_FACTS: - Euro hits one-year low against US dollar. - ECB President Lagarde pushes back against additional monetary policy tightening. - Dollar index (DXY00) is up by +0.12% and near 13-month high.
The euro continues to decline against the US dollar, hitting a one-year low on Tuesday. According to reports, the euro's downfall is attributed to the European Central Bank (ECB) President Christine Lagarde's comments pushing back against any additional tightening of monetary policy. This move has led to a recovery in the dollar, with the dollar index (DXY00) rising by +0.12% and nearing its 13-month high.
Lagarde's dovish comments have contributed to the euro's decline, as investors bet on the Federal Reserve's (Fed) potential interest rate hikes. The dollar has been gaining strength against the euro, with the dollar index (DXY00) up by +0.17% on Monday. The euro's weakness is also attributed to higher US Treasury yields.
The dollar's rise against the euro comes as investors assess the monetary policy outlook for both the US and Europe. While the Fed is expected to continue raising interest rates, the ECB has signaled a more dovish stance. As a result, the euro has fallen to a one-year low against the US dollar, with investors closely watching the developments in the currency markets.