Euro Dollar Exchange Rate Today

The euro weakened against the US dollar following President Trump’s announcement of new global tariffs on steel and aluminum. This strengthened the US dollar and widened the gap between US and European interest rates. Market expectations anticipate further weakening of the euro due to potential deflation triggered by US tariffs and a more dovish stance from the European Central Bank (ECB). German Chancellor Olaf Scholz indicated a swift response from the EU if tariffs are imposed, suggesting potential retaliatory measures. The EU also signaled a willingness to negotiate vehicle import taxes to de-escalate a potential trade war.

The EUR/USD decreased to 1.0312 on Monday, February 10th, a 0.15% drop from the previous trading session. Historically, the EUR/USD reached an all-time high of 1.87 in July 1973. While the euro was officially introduced in 1999, historical exchange rate data before this date can be modeled using a weighted average of predecessor currencies. Forecasts predict the EUR/USD to trade at 1.03 by the end of the quarter and 1.01 in 12 months.

The current EUR/USD spot exchange rate indicates the immediate value of one euro in US dollars for same-day transactions. Conversely, the EUR/USD forward rate is the agreed-upon exchange rate for a future date.

The table below showcases various cross rates for the euro against other major currencies on February 10th, 2025.

Key economic indicators, such as inflation and interest rates for both the Euro Area and the United States, influence the euro dollar exchange rate. These indicators provide insights into the economic health and monetary policy of each region.

Global market fluctuations in commodities, currencies, stocks, and bonds can also impact the euro dollar exchange rate. Understanding these broader market trends is crucial for interpreting the current exchange rate and predicting future movements.