The Euro Fell as The Fourth Closure Began in Austria to Contain Covid-19

The European euro fell on Monday, approaching its lowest level in 16 months, on the back of growing fears of the repercussions of the new restrictions to besiege Covid-19 in Europe, at a time when Austria began a complete closure, while Germany considers emulating it.

Austria began its fourth closure, the first since vaccines were widely available, closing markets, bars, cafes, and theaters for the Christmas period.

The fourth wave of cases prompted Germany, the largest economy in Europe, to impose a state of public emergency, and Health Minister Jens Young warned that vaccinations alone would not be enough to reduce the number of cases.

The euro fell 0.25 percent to $1.122, close to a 16-month low reached on Friday when Austria announced the closure.

Against the pound, the euro rose 0.1 percent to 83.95 pence, after earlier touching its lowest level against the British currency since February 2020, while the market is studying Bank of England Governor Andrew Bailey’s cautious comments on inflation over the weekend.

The dollar index, which measures its performance against six major currencies, settled little changed at 96.141, close to its lowest level in 16 months, which was recorded last week at 96.266.