The measures taken by the European Central Bank (ECB) to combat the effects of the corona crisis accelerated the downward slide. The European common currency cost $ 1.1090 in the afternoon. In the morning, she had quoted over $ 1.13. The ECB set the reference rate at $ 1.1240 (Wednesday: 1.1336). The dollar thus cost 0.8897 (0.8822) euros.
The ECB has taken a number of measures to mitigate the economic impact of the virus crisis. Among other things, it was decided to temporarily expand the purchase of securities. However, the deposit rate cut expected by many observers did not exist. ECB President Christine Lagarde called for decisive and coordinated action from the EU institutions and the member countries.
"The corona virus is a supply and demand shock that central banks cannot really influence," Otmar Lang, chief economist at Targobank, defended the ECB. "It would be roughly presumptuous to assume that central banks can currently have a stabilizing effect on financial markets and economic areas with their monetary policy." This was also shown by the interest rate cut by the US Federal Reserve last week, which failed to have the desired effect on the financial markets.
However, the euro came under pressure in the morning. The announcement by US President Donald Trump to close the US borders for EU citizens for 30 days due to the spread of the corona virus led to another sell-out in the stock markets. The euro was also burdened by the situation in Italy. Most stores across the country have been closed since Thursday morning. Only supermarkets and pharmacies remain open. The measures are likely to weigh heavily on the already weakening Italian economy.
For other major currencies, the ECB set the reference rates for one euro at £ 0.88623 (0.87690), £ 116.84 (118.55) Japanese yen and 1.0549 (1.0591) Swiss franc. The troy ounce of gold (31.1 grams) was traded in London in the afternoon at $ 1,569. That was $ 65 less than the previous day./jsl/bgf/fba
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