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Euro falls to a 20-year low against the dollar; Treasury pays 6% above inflation again

O euro fell to around $1.03 on Tuesday, down more than 8% against the US dollar year-to-date. Now the currency is trading at its lowest level since late 2002.

According to analysts, the pessimistic economic outlook, with recession fears rising globally, is one of the main reasons for the euro’s price.

The economic slowdown in the world may also mean that the Fed (Federal Reserve System, the American central bank) may not raise interest rates so aggressively in the US to curb inflation.

The inflationary scenario makes fixed income continue to be more attractive, due to high interest rates. Treasury Direct bonds linked to inflation in Brazil returned to pay 6% pa above inflation, something that had not happened since 2016.

Presented by Priscila Yazbek, the CNN Money presents a balance of news issues that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.

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Source: CNN Brasil

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