Euro steadies near five-year lows ahead of ECB President Lagarde’s speech

On Tuesday, the euro settled near a five-year low against the dollar, ahead of a speech by European Central Bank President Christine Lagarde.

The dollar fell slightly from its highest level in 20 years against a basket of currencies before an expected hike in the US interest rate this week, as investors focused on the possibility of the Federal Reserve (the US central bank) raising interest rates more than expected.

Concerns about inflation, growth, and energy shortages due to sanctions imposed on Russia for its invasion of Ukraine have pushed the euro down about 15 percent against the dollar in three months.

Data showed German unemployment fell even though the Ukraine war has slowed the recovery that has continued since the lifting of pandemic restrictions.

The euro had fallen to $1.05075 by 0855 GMT. It had fallen to $1.0407 on Thursday, its lowest since January 2017.

The dollar settled at 103.54 against a basket of currencies, after hitting 103.48 on Thursday, its highest level since December 2002.

The Japanese yen hit 130.10 yen to the dollar after hitting 131.24 yen to the dollar on Thursday, its lowest since April 2002.