Euro drops against US dollar in over couple of years
(MENAFN) The euro has dropped to its frailest stage against the US dollar in over a couple years, hitting EUR/USD 1.03. The fall happens due to Germany’s frequent economic sluggishness and an EU-wide energy crisis.
The euro fell by 0.4 percent against the US dollar on Thursday morning, reaching 1.032 by midday in Europe. This marks the currency's lowest level against the dollar since November 2022, a time when much of the EU was preparing for potential winter gas shortages following the bloc's embargo on Russian fossil fuels.
Germany's Economy continues to suffer from the fallout of this embargo. The country experienced contractions in both 2023 and 2024, and its central bank projects modest growth of just 0.2 percent for this year. Once regarded as Europe's industrial leader, Germany has faced mounting energy costs since severing ties with Russian oil and gas. Major manufacturers like Volkswagen and Bosch announced reductions in production in 2024.
The euro's struggles have been further compounded by political turmoil. The governments of both Germany and France collapsed late last year, and the entire EU is bracing for the impact of tariffs promised by US President-elect Donald Trump.
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