Foreign exchange: Euro weakens slightly against the US dollar

FRANKFURT (dpa-AFX) - The euro fell on Wednesday. This morning, the common currency traded at 1.1620 US dollars, after having stood at 1.1650 dollars the previous evening.

Commerzbank foreign exchange experts point to recent political developments in France. "The government crisis in France surrounding the essential budget consolidation to limit the increase in debt, and the rise in French yields, demonstrate how quickly the euro can come under downward pressure again," said analyst Antje Praefcke.

In France, the government is on the brink. Prime Minister François Bayrou plans to ask parliament for a vote of confidence on September 8. Left-wing parties and right-wing populist Marine Le Pen are united in their efforts to bring Bayrou down. President Emmanuel Macron, whose centrist coalition governs without a majority, would then have to appoint a new prime minister for the third time.

However, concerns about the independence of the US Federal Reserve remain a dominant theme in the foreign exchange market. US President Donald Trump recently announced the dismissal of Fed Governor Lisa Cook, thereby increasing pressure on the central bank.

Even though the dollar's exchange rate gained some ground this morning, analysts at Landesbank Hessen-Thüringen, Helaba, see consequences for the American currency: "It is less doubtful that these maneuvers will damage the US dollar's reputation as a bastion of stability."/jkr/mis