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Euro continues to fall: what does this mean for your money?
The euro falls against the dollar as Trump optimistically discusses tariff cuts. Current exchange rate analyses.
Euro continues to fall: what does this mean for your money?
On Thursday, April 23, 2025, the euro weakened against the US dollar. The current exchange rate is 1 euro = 1.1320 US dollars, while the European Central Bank (ECB) set the reference rate at 1.1415 US dollars, down from Tuesday's rate of 1.1476 US dollars. The dollar, on the other hand, costs 0.8760 euros, after 0.8713 euros on Tuesday.
However, in the context of the global tariff war initiated by US President Donald Trump, there are initial signs of relaxation. The Wall Street Journal reported that the USA is considering a significant reduction in China tariffs. However, US Treasury Secretary Scott Bessent made it clear that there is no unilateral offer from Trump to reduce tariffs.
ECB developments and interest rates
Trump also said that he does not plan to fire Federal Reserve Chairman Jerome Powell and would like Powell to play a more active role in cutting interest rates. These recent events are supporting the US dollar against all major currencies.
In a conversation with Italian Prime Minister Giorgia Meloni, Trump was optimistic about an agreement with the EU. On Thursday, the ECB cut key interest rates for the seventh time since June 2024 by 0.25 percentage points to 2.25 percent. These measures are intended to support the weak economy in the eurozone. ECB President Christine Lagarde spoke of “extraordinary uncertainty” and increased downside risks for economic development. Declining inflation in the euro area gives the ECB leeway to cut interest rates, which it is making significant use of through lower oil prices and an increased euro exchange rate.