The euro soared on Tuesday to a maximum level of five sessions against the dollar and closed the month of January with gains above 2 percent, after the statements of the commercial advisor of the u.s. president Donald Trump, Peter Navarro, who said that Germany was benefiting from a euro that is “extremely undervalued”.
The European Central Bank (ECB) fixed the exchange rate at 1.0755 units, for a gain on the day of 0.56 per cent. In the day, the euro touched an intraday high of 1.0800 dollars.
The euro, moving away from its lowest level in 14 years that he played at the beginning of this month of 1.0339 dollars. In the previous three years had declined by nearly 25 percent.
To the end of that month, the european currency closed with a positive balance of 2.27 percent.
El dollar index, in both, was listed at 0.93 percent, 99.94 units, a level that touches for the first time in five days.
The currency of the block is appreciated further against the pound , although without reaching a maximum session, to 86.10 pence.
Navarro, head of the newly created National Council of Commerce, told the Financial Times that “a great obstacle to see the ATCI (Association Transatlantic Trade and Investment) as a bilateral agreement is Germany, which continues to exploit other countries in the European Union, like the united States, with a ‘German mark implied’ that it was extremely undervalued”.
“The structural imbalance in the German trade with the rest of the EU and the united States underscores the heterogeneity of economic within the European Union, so this is a multilateral agreement with a suit bilateral,” he said.
The statements of Navarro, a prominent critic of China and author of a book entitled “Death by China” (“China: the conflict in sight”), is produced after similar comments were made by the same Trump to The Wall Street Journal two weeks ago, in which he said that the strength of the greenback against the yuan “is killing us”.
The promises to Trump tax cuts, spending plans and tax hikes of interest rates in the united States have boosted the dollar at the global level. But a hard currency threat the american competitiveness and hinders the return of jobs in manufacturing in the country, one of the main election promises Trump.
“it Seems that the policy of the strong dollar is over, is a thing of the past,” said Neil Jones, an economist at Mizuho in London. “The recent concern of the united States by the dollar strong against China is happening now to the euro area with these comments from a euro undervalued”.
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