The euro fell to $1.0625, its lowest level since mid-April, as the strength of the U.S. dollar surged following Donald Trump's victory in the U.S. election.
Euro falls to lowest since April
Investor concerns have been fueled by the potential trade tariffs Trump has proposed, which could negatively impact European exports. Additionally, reports about potential picks for Trump's administration raised worries about policies that might affect Europe's economy.
ECB's impact
The euro's decline was further exacerbated by political instability in Germany, where Chancellor Olaf Scholz’s coalition partner, the Greens, called for an early parliamentary vote, raising the possibility of snap elections. Meanwhile, market expectations for European Central Bank rate cuts have been adjusted, with a 25 basis point cut now anticipated for December, alongside reduced chances of a larger reduction.
