The monetary exchange between the dollar and the euro plays a crucial role as a measure between the economies and stability of Europe and the United States. This exchange rate can affect international trade transactions, determining purchasing power and competitiveness.
Its monitoring is vital for investors, multinational companies, and economic authorities, and it is also important for individuals who wish to make transactions at currency exchange offices for everyday situations like traveling abroad.
In the last session, the foreign exchange market experienced variations in the US dollar and the euro. According to the latest data, 1 US dollar is exchanged for 0.87577 euros, while 1.14185 US dollars are required to buy 1 euro.
These variations in the exchange rate are indicative of how economic changes, policies of the US Federal Reserve (Fed) and the European Central Bank, along with geopolitical and socio-economic events, affect currency valuations.
Staying updated with the exchange rate is crucial for agents in the global economy, as it facilitates informed and appropriate decision-making in an economic landscape.
The EU and eurozone economies experienced a weaker-than-expected start in 2024, adjusting growth expectations downward to 0.5% for 2023 and projecting a moderate increase for the following years, with 0.9% in the EU and 0.8% in the eurozone in 2024, before reaching stronger growth in 2025.
This adjustment reflects the impacts of various challenges, such as the weakening of purchasing power and declining external demand. Despite these challenges, a gradual recovery is anticipated, driven by improvements in inflation conditions and a stable labor market.
On the other hand, a foreseeable slowdown in inflation is observed, contrasting with the higher forecasts from last autumn. Annual inflation in the EU is estimated to fall to 3.0% in 2024 and 2.5% in 2025, with a similar trend in the eurozone. This change is largely due to falling energy prices and a relaxation in price pressures on goods and services. This trend represents 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 trade disruptions. Factors such as climate risks and an increased incidence of extreme weather events also contribute to this uncertainty. These elements present additional challenges for the EU and eurozone economies, potentially affecting growth and inflation projections and complicating medium-term economic recovery prospects.
Amid rising geopolitical risks and high inflation, the euro has proven to be a robust currency. At 25 years since its launch, it remains the second most important currency in the international monetary system, surpassed only by the US dollar.
— new from Infobae