Foreign exchange market: The euro has dropped to its lowest level since mid-2020

The euro remained weak on Tuesday.

On the night of Tuesday, the common currency fell to 1.1226 dollars, its lowest level since mid-2020. Similar lows have already been marked in the past few weeks.

The European Central Bank (ECB) set the reference rate on Monday at $ 1.1278.

The euro has been under pressure from US monetary policy for a long time.

On Monday, American President Joe Biden nominated current Federal Reserve Chairman Jerome Powell for a second term.

This was picked up in the markets as a sign of continuity, which strengthened the dollar.

In addition, there is increasing evidence of a faster tightening of monetary policy by the US Federal Reserve Fed.

With Raphael Bostic, the third central banker has brought a quicker repayment of the immense Fed securities purchases into play within a short period of time.

Fed Chairman Powell's deputy, Richard Clarida, had made similar remarks before him.

One important reason is likely to be the high inflation well above the Fed target.