The euro is falling again against the dollar after the publication of the results of the European Central Bank (ECB) meeting, trading data show.
The euro was down to $0.994 against the dollar from the previous closing level of $0.9999. Before the ECB’s monetary policy decision, the euro appreciated against the dollar. The dollar-yen exchange rate rose to 144.38 yen from 143.7 yen. The dollar index (the exchange rate against a basket of currencies of six U.S. trading partners) was down 0.06% to 109.78 points.
Why is the euro falling today?
At the end of its September meeting, the European Central Bank raised its prime rate by 75 basis points at once, to 1.25% per annum, for the first time in its history. The regulator also said it would be appropriate to further raise the discount rate at the next few meetings.
The regulator also raised its forecast for inflation in the euro zone by the end of 2022 – it now expects it to reach 8.1% instead of the forecasted 6.8% in June. The forecast for growth in consumer prices in the Eurozone in 2023 also raised upto 5,5% from 3,5%, and in 2024 – to 2,3% from 2,1%.
The ECB raised its forecast for euro-area economic growth in 2022 to 3.1% from 2.8% expected in June. Next year, euro zone GDP growth is forecast at 0.9% against 2.1% in the June forecast, and in 2024, 1.9% instead of 2.1%.
Earlier, we reported that the Nasdaq index had been falling for seven days in a row.