The exchange rate of the euro against the US dollar increases. In mid-April, it reached its highest level in more than a year at more than $1.10.
Economists expect the euro to climb further to 1.20 or even 1.30 dollars. The most important reason is the expectation that interest rates in Europe will rise and remain high for longer than in the USA.
Since its low in the summer of 2022, the euro could gain more than 30 percent in value. That would have significant consequences for prices and interest rates in Germany, but also for many investments, for your trips and for German exports.
The euro is making a comeback. In the week after Easter, the exchange rate of the euro to the US dollar exceeded the mark of 1.10 dollars. It climbed to its highest level in more than a year. According to many economists, this strength is sustainable. They even believe that Europe’s common currency can rise steadily to $1.20 or even $1.30. The last time the euro was worth that much was in the summer of 2014, almost a decade ago.
The soaring euro has several causes and important implications for the entire economy. This applies in particular to Germany, as a country that is very closely integrated into the global economy. We give you an overview of the forecasts for the euro, the main reasons for its strength and the consequences for prices, interest rates, investments and the economic outlook in Germany.