The relationship between dollar and euro exchange rate It is fundamental in the global economic sphere, since this factor influences international trade, foreign investment, prices of raw materials and the 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 0.93360 euroswhile to acquire 1 euro requires 1.07110 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 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.
In the face of challenges marked by increased global economic instability, the euro has demonstrated remarkable 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.
