A stricter monetary policy, with higher rates, would make the dollar more attractive. Thus the euro rose slightly against the greenback which made significant gains on Monday.

The euro rose slightly against the US dollar on Monday after significant gains for the greenback, as the market watched for upcoming interventions by members of the MONETARY COMMITTEE OF THE US Central Bank (Fed). Around 09:00 GMT (11:00 in Paris), the euro gained 0.25% against the dollar, to 1.1893 dollars per euro. The European single currency remains down 1.9% since the conclusion of the Fed meeting on Wednesday.

The Fed has slightly hardened its message while it promised until then to keep rates as low as possible over the long term to support the economy, still faltering after the Covid-19 pandemic, its members are now talking about an increase as early as 2023 to cope with inflation that Leaves. It could even raise rates as early as next year if U.S. inflation remains high by then, St. Louis Federal Reserve Chairman James Bullard said Friday.