Euro descends to its lowest level in two years against the dollar
The currency has hit its lowest level against the U.S. dollar since November 2022. Read Full Article at RT.com.
TroibNews 
Economic and political instability has significantly impacted the Eurozone, leading to a decline in the euro's value against the US dollar, which has plummeted to its lowest level in over two years at EUR/USD 1.03. This decline is occurring in the context of Germany's ongoing economic stagnation and a widespread energy crisis across the EU.
On Thursday morning, the euro fell by 0.4% against the dollar, dipping to 1.032 by midday in Europe. This marks the lowest trading level for the European currency against the dollar since November 2022, a period when the European Union was bracing for winter gas shortages following the embargo on Russian fossil fuels.
The repercussions of this embargo continue to trouble the German economy, which has contracted in 2023 and 2024. The country's central bank anticipates a meager growth of just 0.2% this year. Once recognized as Europe’s industrial leader, Germany is now grappling with rising energy costs after severing ties with Russian oil and gas. Major German manufacturers, including Volkswagen and Bosch, have disclosed plans for cutbacks in 2024.
Political instability has further complicated matters for the euro, as both the German and French governments collapsed late last year, while the entire EU prepares for potential tariffs promised by US President-elect Donald Trump.
The European Central Bank reacted to these challenges by lowering interest rates four times last year and is expected to announce additional cuts in 2025.
According to Bloomberg, these converging factors have led analysts to speculate that the euro might approach parity with the dollar this year. The euro was last recorded below parity in early 2022, shortly after the tensions in Ukraine escalated.
This decline in the euro occurred just a day after Britain reported its most significant drop in manufacturing output in 11 months, and less than two weeks after a new government forecast projected growth at 0% for the final quarter of 2024.
Frederick R Cook for TROIB News
On Thursday morning, the euro fell by 0.4% against the dollar, dipping to 1.032 by midday in Europe. This marks the lowest trading level for the European currency against the dollar since November 2022, a period when the European Union was bracing for winter gas shortages following the embargo on Russian fossil fuels.
The repercussions of this embargo continue to trouble the German economy, which has contracted in 2023 and 2024. The country's central bank anticipates a meager growth of just 0.2% this year. Once recognized as Europe’s industrial leader, Germany is now grappling with rising energy costs after severing ties with Russian oil and gas. Major German manufacturers, including Volkswagen and Bosch, have disclosed plans for cutbacks in 2024.
Political instability has further complicated matters for the euro, as both the German and French governments collapsed late last year, while the entire EU prepares for potential tariffs promised by US President-elect Donald Trump.
The European Central Bank reacted to these challenges by lowering interest rates four times last year and is expected to announce additional cuts in 2025.
According to Bloomberg, these converging factors have led analysts to speculate that the euro might approach parity with the dollar this year. The euro was last recorded below parity in early 2022, shortly after the tensions in Ukraine escalated.
This decline in the euro occurred just a day after Britain reported its most significant drop in manufacturing output in 11 months, and less than two weeks after a new government forecast projected growth at 0% for the final quarter of 2024.
Frederick R Cook for TROIB News
