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Why did the euro fall versus the dollar today, despite the interest rate rise from the central bank?

by Guest57907  |  earlier

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Why did the euro fall versus the dollar today, despite the interest rate rise from the central bank?

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  1. If the US central bank raise interest rates money will move to the US making the dollar more desirable and the Euro less desirable.  Hence it is perfectly logical for the Euro to fall against the dollar in this instance.


  2. When the European central bank raises interest rate, the value of the Euro increases which makes their imports from international trade cheaper. And lessen inflationary pressures there. The Euro fall against the dollar because the dollar value has been held steady recently, but the dollar may increase its value when the FEB increases interest rate there.  Which means the Euro against the dollar may fall further. The high oil price may have some impact on the value of the Euro verses the dollar.

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