The monetary exchange between dollar and euro plays a crucial role in serving as a measure between the economy and stability between Europe and the United States. This exchange rate could affect international commercial transactions, determining purchasing power and competitiveness.
Its monitoring is vital for investors, multinational companies and economic authorities, however, it is also important for those people who wish to carry out transactions in Exchange Houses for everyday situations such as a trip abroad.
In the last session, the foreign exchange market saw variations in the US dollar and the euro. According to the latest data, 1 US dollar is exchanged for 0.92170 euroswhile required 1.08495US dollars to buy 1 euro.
These variations in the exchange rate are indicative of how economic changes, the policies of the US Federal Reserve (Fed) and the European Central Bank, along with geopolitical and socioeconomic developments, affect the valuation of currencies.
Keep up to date with exchange rate It is crucial for agents of the global economy, since it facilitates the making of informed and appropriate decisions in an economic panorama.
The EU economy and the euro zone experienced a weaker-than-expected start to 2024, adjusting growth expectations downward to 0.5% for 2023 and projecting a moderate increase for subsequent years, with 0.9% in the EU and 0.8% in the euro area in 2024, before reaching a more robust growth in 2025.
This adjustment reflects the impacts of various challenges, such as weakening purchasing power and declining external demand. Despite these challenges, it is anticipated that gradual recovery driven by improved inflation conditions and a stable labor market.
On the other hand, there is a foreseeable slowdown in inflation, contrasting with the highest forecasts from last fall. The annual inflation in the EU it is estimated to fall to 3.0% in 2024 and 2.5% in 2025, with a similar trend in the euro area. This change is largely due to the drop in prices of energy and a relaxation in the pressures on the prices of goods and services. This trend represents a relief for the economy, paving the way for a gradual stabilization of prices.
Finally, the economic outlook is marked by notable uncertainty, exacerbated by geopolitical tensions and potential impacts of business disruptions. Factors such as climate risks and a higher incidence of extreme weather events also contribute to this uncertainty. These elements present additional challenges for the EU and Eurozone economy, potentially affecting the growth and inflation projections and complicating the prospects for economic recovery in the medium term.
Faced with challenges marked by greater global economic instability, the euro has demonstrated notable resilience. A quarter of a century after its launch, it is the second most influential currency after the US dollar.
According to Consilium Europethe euro is the currency that some countries have chosen to make loans and reserves in central banks worldwide, representing 20.5% of global currency reserves in 2022, according to constant exchange rates, compared to the 58.4% of the US dollar.
