June 23, 2024

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How is the euro versus the dollar on May 18?

How is the euro versus the dollar on May 18?

The Euro is the currency of the European Union and its symbol is €. (Jesus Aviles/Infobay)

Monetary exchange between Dollar and euro It plays a crucial role in acting as a barometer between the economy and stability between Europe And the United States. this exchange rate It can influence international business transactions, determining purchasing power and competitiveness.

Its monitoring is vital for investors, multinational companies and economic authorities, however, it is also important for people who want to conduct transactions in Exchange houses For everyday situations such as a trip abroad.

The euro, also called the single currency, is the official currency of the European Union. (Infobae archive/agencies)

In the last day, the foreign exchange market saw movements in both currencies: the US dollar and the euro. According to the latest data, 1 US dollar is equivalent to 0.92005 euroswhile acquiring 1 euro requires 1.08695 dollars Americans.

This exchange rate reflects how economic fluctuations and monetary policies adopted by the US Federal Reserve and the European Central Bank, as well as geopolitical, social and economic events, can affect the valuation of currencies.

Deep and up-to-date knowledge of the exchange rate is essential for those involved in… International EconomyAllowing for more informed and timely decisions in a constantly evolving economic environment.

The euro is the official currency of twenty countries in the European Union. (Infobae archive/agencies)

According to the European Commission Economy of the European Union and the Eurozone It started 2024 with slower growth It is expected that growth forecasts will be revised downward to 0.5% and 0.9%, respectively, for 2023 and 0.8% for 2024 in the euro area.

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This represents a Back down from expectations Previous estimates, although an improvement is expected by 2025 with growth expected at 1.7% in the EU and 1.5% in the Eurozone. Factors such as deteriorating household purchasing power and lower external demand have contributed to this slowdown, although a recovery driven by lower inflation, real wage growth and labor market flexibility is expected.

Inflation, on the other hand, appears Signs of slowdown Faster than initially expected, with forecasts showing a significant decline from 6.3% in 2023 to 3.0% in 2024 and 2.5% in 2025 in the EU and a similar trend in the Eurozone. this Decrease in inflation This is mainly due to lower energy prices General decrease in pressures About prices.

However, these economic forecasts face uncertainty, especially due to the global financial crisis Geopolitical tensions Long lead times and risks associated with higher transportation costs and potential new supply bottlenecks. These factors, along with climate risks and the potential for extreme weather events, can affect economic growth and inflation, adding a degree of volatility. suspicion to current forecasts.

In the face of the challenges of greater global economic instability, the euro has shown remarkable resilience. A quarter of a century after its launch The second most influential currency After the US dollar.

according to Consilium EuropeThe euro is the currency chosen by some countries to provide loans and reserves in central banks around the world, and it represents 20.5% of global currency reserves in 2022, according to fixed exchange rates, compared to 58.4% for the US dollar.

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