The relationship between dollar and euro exchange rate It is fundamental in the global economic sphere, since this factor influences international trade, foreign investment, raw material prices and economic stability of the regions.
Understanding the exchange rate between both currencies is crucial for investors, businessmen and politicians seeking to make informed decisions in the international financial context.
In the last day, the foreign exchange market presented movements in both currencies: the US dollar and the euro. According to the most recent data, 1 US dollar is equivalent to 0.91660 euroswhile to acquire 1 euro requires 1.09100 dollars Americans.
This exchange rate reflects how economic fluctuations, monetary policies adopted by the United States Federal Reserve and the European Central Bank, as well as geopolitical and socioeconomic events, can influence the valuation of currencies.
A deep and up-to-date knowledge of the exchange rate is essential for those who participate in the Global economyallowing more informed and timely decisions to be made in an economic environment that is constantly evolving.
According to the European Comission the economy of the EU and the euro area has started the year 2024 with slower growth than expected, revising growth forecasts downward to 0.5% and 0.9% respectively for 2023 and 0.8% for 2024 in the euro area.
This represents a decline from expectations previous estimates, although an improvement is expected by 2025 with expected growth of 1.7% in the EU and 1.5% in the euro area. Factors such as the deterioration in household purchasing power and the fall in external demand have contributed to this slowdown, although a rebound is anticipated driven by a decrease in inflation, growth in real wages and a resilient labor market.
Inflation, on the other hand, shows signs of slowdown faster than initially forecast, with predictions indicating a significant decline from 6.3% in 2023 to 3.0% in 2024 and 2.5% in 2025 in the EU and a similar trend in the euro area. This decrease in inflation is mainly attributed to lower energy prices and a general decrease in pressures about prices.
However, these economic projections face uncertainties, particularly due to the geopolitical tensions prolonged periods and the risks associated with rising transport costs and possible new supply bottlenecks. These factors, along with climate risks and the possibility of extreme weather events, could influence economic growth and inflation, adding a degree of uncertainty to current predictions.
On the 25th anniversary of the euro in 2024, the EU paused to reflect on how this currency Every day it embodies the freedoms and opportunities it offers its members.
Currently the EU is a trading partner of approximately 80 countries, with which it makes agreements in euros, which makes it easier for it to transactions by not having to do the respective currency conversions.
