Euro Dollar Exchange Rate: 1.20 for the First Time Since 2021
- For the first time as June 2021,well before the war between Russia and Ukraine began,the euro-dollar exchange rate has broken through the 1.20 mark.
- Thes words might seem paradoxical, considering the average exchange rate has fallen to its lowest levels as late 2021.
- The rise in the euro-dollar exchange rate can have a dual effect on the Eurozone.
For the first time as June 2021,well before the war between Russia and Ukraine began,the euro-dollar exchange rate has broken through the 1.20 mark. This breakout anticipates a move expected by some analysts later this year. It happened just hours after statements from former U.S. President Donald Trump, who enthusiastically commented on the fall of the greenback. The dollar lost 1.5% against the average of the major world currencies yesterday, something that hadn’t happened as the declaration of tariffs last April.
Trump Approves of Rising Euro-Dollar Exchange Rate
“It’s fantastic” and ”the dollar is doing great,” the tycoon said.
Thes words might seem paradoxical, considering the average exchange rate has fallen to its lowest levels as late 2021. The truth is that a weak dollar is welcomed by the White House, as it allows the United States to rebalance its trade balance. For decades, the world’s leading economy has been burdened by a strong exchange rate, which makes exports uncompetitive and imports cheap. This has contributed to the near disappearance of manufacturing on American soil.
Impact on the Eurozone
The rise in the euro-dollar exchange rate can have a dual effect on the Eurozone. On the one hand, it reduces the