Euro Hits 7-month Low Against the Dollar

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dollars and euro currency fan isolated on white

The euro has fallen to a seven-month low on Tuesday. The currency has struggled to maintain its price as the European Central Bank and the United States Federal Reserve have different monetary policy stances that are not aligned with each other’s interests.

The EUR/USD has fallen to 1.0682, which is the weakest it has been since April 23.

Robust job reports released on Friday further cause the euro to fall, and strengthened the possibility that the Federal Reserve will raise interest rates in December at the next monetary meeting.

As the United States added 271,000 jobs last month, the euro has been struggling due to a weak economy. The ECB has discussed options that will lower interest rates even further and is expected to cut deposit rates into negative territories.

Mario Draghi, ECB president, stated that the bank may increase its monetary stimulus plan next month to help combat low inflation levels.

The euro also fell against the yen on Tuesday, down 0.41% on the day to reach 131.87. With the United States planning to raise interest rates, the European Union will struggle to maintain its currency’s value as prices will be higher for the country going into 2016, and likely into 2017 according to data from the ECB.

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