Euro hits EUR/USD 1.03 caused by Germany’s pursued economic stagnation and an EU-wide power crisis
(MENAFN) The euro has decreased to its lowest level against the US dollar in over two years, hitting EUR/USD 1.03. The fall comes after Germany’s pursued economic stagnation and an EU-wide power crisis.
The euro slumped by 0.4 percent against the greenback on Thursday morning, hitting 1.032 by midday in Europe. The European currency has not traded this slump against the greenback since November 2022, when most of the EU was getting ready for winter gas lack following the bloc banned Russian fossil fuels.
The German Economy is still suffering from the results of this ban. It fell in 2023 and 2024, while the nation’s central bank predicts meager raise of 0.2 percent in the recent year. Once Europe’s industrial powerhouse, Germany has suffered with surge energy costs since it stopped importing from Russian oil and gas. Resulting German manufacturers – such as Volkswagen and Bosch – declared cutbacks in 2024.
Political insecurity has also worsen the euro’s woes, with the authorities of Germany and France slumping late previous year, and the whole EU reinforcing for US President-elect Donald Trump’s vowed tariffs.
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