The Fed raises interest rates and the euro falls ›World› Granma

After the US Federal Reserve raised interest rates by 75 basis points and hinted that it will increase them further this year and in 2023, the euro this Thursday suffered its biggest drop in 20 years at its lowest value against the dollar.

According to DW, the European currency was trading at $0.9833, compared to $0.9891 in the last hours of European forex trading the day before. The Federal Reserve raised interest rates.

He pointed out that on the twenty-second of this month, the euro was trading at $0.9833, compared to $0.9891 in the last hours of European trading in the foreign exchange market the previous day.

“The Federal Reserve raised its interest rates to between 3 and 3.25%, a decision that markets had already cut, but its members’ expectations of rates are capped, up another 125 basis points through the end of the year and above. Another 25 basis points in 2023 to 4.6%.”

Being a safe currency in times of crisis, investors have had to resort to buying dollars to avoid the risks of tensions with Russia over the conflict in Ukraine.