The euro started the new week with little change on Monday. In the evening, the common currency cost $ 1.0535, 0.1 percent less than on Friday evening. The euro is thus once again close to its five-year low of 1.0471 dollars, which was marked at the end of April. The US currency has been benefiting from the prospect of significantly higher interest rates in the US for some time.
The prospect of rising interest rates kept bitcoin and other digital currencies under pressure in the financial markets. The price of the largest Internet currency by market value fell to $32,387. That was the lowest level since July 2021. Just a few days ago, a Bitcoin had cost around 40,000 dollars. Other crypto assets, such as ether, were down more than 10 percent at the start of the week. Rising interest rates usually weigh on risky assets such as digital currencies. In addition, Bitcoin and other crypto assets do not generate any current income such as interest. When interest rates rise, interest-free investments become less attractive than interest-bearing securities such as fixed-income securities. “In view of rising interest rates, investors are turning their backs on risky asset classes and are looking for fixed-income investment alternatives,” said Bitcoin expert Timo Emden of Emden Research.
Although crude oil prices fell on Monday, they were still at a high level. A barrel of Brent was priced at $107.95 in the evening. Prices are being driven by the persistently high level of uncertainty due to the Russian war against Ukraine. Russia is one of the world’s largest oil producers and has been subject to severe sanctions by many, primarily Western, countries. At the weekend, the G7 countries, including Germany, declared that they would sooner or later stop buying Russian oil.