The euro maintained its position close to multi-month highs against the dollar on Thursday, despite slight declines. The U.S. currency is facing pressure due to concerns over slowing economic growth and as traders closely monitor Germany’s ongoing debate on fiscal reforms. This situation arises amidst global trade disputes and recession fears that have disrupted markets.
President Donald Trump’s increasing tariff threats, especially concerning the EU and Canada, have adversely affected the dollar in transatlantic currency pairs more than their European counterparts. Despite marginal dips, the euro and sterling held their ground, trading near recent highs.
Germany’s potential fiscal reset plan has been pivotal in bolstering the euro. The German parliament’s special session on a substantial infrastructure fund and new borrowing rules is expected to support economic growth significantly, influencing broader market expectations. At the same time, other currencies like the Japanese yen and Swiss franc have shown mixed but steady reactions amid stubborn trade uncertainties.
(With inputs from agencies.)
