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

The euro rose slightly against the US dollar on Monday after significant gains for the greenback, with the market waiting for future interventions by members of the monetary committee of the American Central Bank (Fed). Around 09:00 GMT (11:00 in Paris), the euro gained 0.25% against the dollar, at 1.1893 dollars per euro. The single European currency has fallen by 1.9% since the conclusion of the Fed meeting on Wednesday

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