May 2, 2023
U.S. dollar rebounded on Wednesday. What about the euro?
On Wednesday, the U.S. dollar rebounded against a basket of major currencies, including the euro. The dollar index, which measures the greenback's strength against a basket of six major currencies, rose by 0.2% to 92.98.
The rebound in the dollar came after a few days of losses, as investors were concerned about the rising number of COVID-19 cases in the United States and the possibility of new lockdowns. However, on Wednesday, investors seemed to be more optimistic about the U.S. economy, as the Federal Reserve released its Beige Book report, which showed that the economy continued to expand at a moderate pace in September and early October.
The euro, on the other hand, weakened against the dollar, as investors were concerned about the rising number of COVID-19 cases in Europe and the possibility of new lockdowns. The euro fell by 0.3% to $1.1745, its lowest level in two weeks.
The European Central Bank (ECB) has also been signaling that it may introduce more stimulus measures to support the eurozone economy, which has been hit hard by the pandemic. The ECB's chief economist, Philip Lane, said on Tuesday that the bank was very attentive to the exchange rate and that it could take action if the euro continued to appreciate.
The ECB's next policy meeting is scheduled for October 29, and investors will be watching closely to see if the bank announces any new measures to support the eurozone economy.
Overall, the U.S. dollar rebounded on Wednesday, while the euro weakened against the dollar. However, the situation remains fluid, and investors will be closely monitoring the latest developments in the COVID-19 pandemic and the global economy.