The variation in the exchange rate between the dollar and the euro It has implications for the world economy, as they are two of the most used currencies in international transactions. Monitoring this type of exchange is essential for those responsible for minimizing risks and maximizing benefits in a globalized environment and even those who wish to carry out transactions in exchange houses.
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 0.92870 euroswhile required 1.07680 US 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 recent review of the economic forecasts of the European Comission by 2024 indicates a slowdown in economic recovery of the European Union and the euro area, adjusting expected growth rates to lower levels than previously anticipated.
For 2023, growth of 0.5% is now expected, with a slight improvement in 2024 but still below expectations previous. This slowdown is influenced by several adverse factors, including reductions in purchasing power and weaker external demand, although a gradual recovery supported by the decrease in inflation and a favorable work environment.
In relation to inflation, projections point to a more accelerated reduction than had been estimated, with a downward trend that is expected to continue until reaching more sustainable levels by 2025. This decrease is mainly the result of the drop in prices energy costs and less pressure on consumer prices in general, which suggests an economic environment on the path to stabilization.
However, the economic context is affected by considerable uncertainty due to external factors, such as continued geopolitical tensions and the potential effects of trade disruptions, in addition to the associated risks to climate changes and extreme weather events. These factors could influence the projected growth and inflation path, adding an element of risk to the EU and Eurozone economic recovery expectations in the short to medium term.
In 2024, there will be 25 years since the introduction of the euro, symbol of the freedom that the European Union offers its citizens. The history of the euro reflects the path towards greater unification and economic stability in Europe, despite the situations it has gone through, such as the pandemic, but mainly Brexit that came into force in 2020, amid geopolitical tensions.
Likewise, this currency has remained the second most important,after the US dollar, being the preference of several countries to use it in their central bank reserves.
