Euro wins dramatically: What drove the currency to maximum?
Euro wins dramatically: What drove the currency to maximum?
Deutschland - The euro experiences a historical high flight and exceeds the US dollar as it has not been in 16 years! In the past few days, the value of the euro has increased by over 4 percent compared to the dollar, which has been the greatest weekly increase since March 2009. This happened during the dollar index, which measures the strength of the dollar compared to several global currencies, by 3.4 percent to 103.90 points - a value that has marked the lowest level since November 2022, such as kosmo.at reported.
The cause of this dramatic change is various factors of US trade policy. In the past few days, US President Donald Trump has raised considerable tariffs on goods from Canada, Mexico and China, which has triggered great uncertainties on the market. His tariffs could burden the dollar and endanger its role as a global reserve currency. In contrast, significant political measures in Germany were announced by the CDU and SPD, which are intended to strengthen the economic and defense budget, which supports the euro, such as stuttgarter-nachrichten.de/inhalt.warum-steigt-euro-mhsd.8f06f659-433a-961-7718d1ae6642.html"> Stuttgarter Nachrichten explained.these political measures and their consequences
The two major German parties plan financial packages, which are intended not only by higher defense spending, but also through a comprehensive infrastructure program. These decisions signal a cohesion on the outside and could further strengthen the euro in the long term. While the US Federal Reserve is under pressure to keep interest rates stable in view of a high inflation, the European Central Bank seems to have reached the end of its interest reduction cycle, which could contribute to further stabilization of the euro.
| Details | |
|---|---|
| Ort | Deutschland |
| Quellen | |
Kommentare (0)