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Euro falls to two-year low after PMI data plunges
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LONDON (Reuters) – The euro dropped to its lowest since December 2022 on Friday after data showed euro zone
LONDON (Reuters) – The euro dropped to its lowest since December 2022 on Friday after data showed euro zone business activity tumbled in November as the bloc’s dominant services industry contracted and manufacturing sank deeper into recession.
The common currency was last $1.0432, down 0.37% on the day, falling past its October 2023 level.
Euro zone government bond yields also fell after the data, and markets increased their expectations of the scale of European Central Bank rate cuts.
(Reporting by Alun John, editing by Dhara Ranasinghe)
The euro is the official currency of the Eurozone, used by 19 of the 27 European Union member countries. It is symbolized by € and is the second most traded currency in the world.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation and stabilizing the currency.
A currency's exchange rate is the value of one currency in relation to another. It determines how much of one currency you can exchange for another and is influenced by various economic factors.
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