The euro rose to a 4-week high during trading on Tuesday on the prospect of a rate hike by the European Central Bank. The euro is growing on the prospects of tightening the ECB’s policy for some time, if the Russian-Ukrainian conflict does not significantly aggravate the situation, analysts at Commerzbank said. The intention of the European regulator to start raising the rate in July and continue this course until the end of September, when the rate will be at zero, played a positive role for the euro. Commerzbank currently expects the ECB to raise its deposit rate to 1.25% by May 2023 from the current minus 0.5%. “This means that at each meeting from July of this year to May 2023, the regulator will move in increments of 25 basis points,” wrote currency analyst at the bank Yuna Park-Heger. The European currency paired with the dollar as of 18:19 Moscow time rose by 0.33% – up to $1.0726 compared to $1.0691 at the close of the previous session. During the auction, the euro rate rose to $1.0737 – the maximum for the last month. The dollar against the yen fell by 1.03% – to 126.58 yen from 127.9 yen the day before. The cost of the British pound, meanwhile, fell by 0.57% – to $1.2516 from $1.2588 a day earlier. The ICE-calculated index, which shows the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), is losing 0.33%, the broader WSJ Dollar Index – 0.24%. Source: FINMARKET.RU

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