The euro continues to gain ground against the dollar, reaching its highest level since November 2021. The European currency stands at $ 1,1568, driven by a context of economic tensions, monetary decisions and an agitated political scenario on both sides of the Atlantic.
Since the beginning of the tariff war, the euro has maintained an upward trend, but it has been in recent days when it has experienced a remarkable impulse. So far from the presidency of Donald Trump, the European currency has revalued 11% against the dollar, and 7% since last April 2, when the president presented his new commercial strategy, baptized as the ‘Day of Liberation’.
The most recent rebound has coincided with harsh criticism from Trump to the president of the Federal Reserve (Fed), Jerome Powell, whom he even publicly asked to dismiss. Trump accuses Powell of acting slowly and erring in his decisions, pressing so that the Fed cut interest rates in the style of the European Central Bank (ECB).
Precisely, the ECB announced a decrease in interest rates of 25 basic points on the same day, placing them at 2.25%, their seventh reduction since June of the previous year. The president of the ECB, Christine Lagarde, showed her support for Powell and highlighted the importance of maintaining a solid relationship between both institutions to guarantee global financial stability.
Lagarde also pointed out that the growing commercial tensions and the appreciation of the euro could exert pressure on inflation in the euro zone, especially in a context of falling energy prices.
Meanwhile, the White House has recognized being evaluating Powell’s possible dismissal. His mandate at the head of the Fed extends until May 2026, which makes any movement in this regard delicate and politically complex.
The appreciation of the euro reflects not only the relative strength of the European economy at this time, but also the growing uncertainty about the course of monetary policy in the United States. A scenario that markets will follow closely.