Closing summary
After a dramatic day in the FX market, here’s a round-up of today’s main stories
We’ll be back tomorrow... GW
Larry Elliott: Fears of energy crunch dragging down euro in face of strong dollar
The euro’s weakness is also a story of US dollar strength, points out our economics editor Larry Elliott.
Investors traditionally flock to the US currency in times of uncertainty and there are plenty of reasons – war, inflation and the prospect of fresh measures in China to combat the Omicron variant of Covid-19 – for them to be jittery.
Economic factors are also pushing the dollar higher. The US is further down the road to economic recovery after the easing of Covid-19 restrictions than the eurozone, plus the country’s central bank, the Federal Reserve, has been quicker to start raising interest rates in response to rising inflation.
Here’s his analysis:
