Euro/US dollar exchange rate sees 7-week high

BERLIN

The euro/US dollar exchange rate rose to around 1.16 on Thursday at 1138GMT, hitting its highest level since April 22.

The rise was due to perceived greater likelihood of interest rate cuts in the US, following this week's tariff agreement between the US and China and better-than-expected inflation data in the US.

Analysts say that the overall price increases have been weaker than previously believed so far, even though the impact of high US tariffs is evident in some areas, adding that the Federal Reserve is likely to cut rates in the near future.

In 1999, when the euro was introduced, the euro/US dollar exchange rate was 1.17, but the currency rapidly lost value against the US dollar, falling to 0.82 in October 2000, but gaining again between 2002 and 2008.

The euro/US dollar exchange rate reached a record high of 1.6 in 2008, and while it enjoyed a high rate for a while, the parity declined to 0.96 in September 2022, its lowest in the last two decades and below the 1.0000 parity level.