Update on the dollar-euro exchange rate today, June 18

Update on the dollar-euro exchange rate today, June 18
Update on the dollar-euro exchange rate today, June 18

The euro is the currency of the European Union and its symbol is €. (Jesús Avilés/Infobae)

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.

The euro, also called the single currency, is the official currency of the European Union. (Infobae Archive/Agencies)

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 0.93280 euroswhile to acquire 1 euro requires 1.07205 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.

The euro is the official currency of 20 countries in the European Union. (Infobae Archive/Agencies)

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.

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.

 
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