The trade tensions Current conditions cause the exchange rate between the dollar and the euro to register strong volatility from day to day. Donald Trump, president of the United States, has proposed the imposition of tariffs on his trading partners under a protectionist argument of the national market.
These movements have caused the US currency to register changes in its price in global markets. In recent months the currency of the European Union registers strength against other currencies, based mainly on the control of inflation in the region and the stability of current surpluses.
Monitoring the exchange rate is of great importance for investors, multinational companies and economic authorities. Below we share with you what were the last movements which recorded the dollar against the euro this November 4th.
In the financial sphere, the exchange rate is a key indicator of economic health. At the moment, 1 US dollar is being exchanged for 0.8688 euros.
These figures highlight the dynamics of the economies that impact not only foreign trade but also investment and financial planning at a business and personal level.
The evolution of this type of exchange is especially critical for sectors that depend on the import or export of goods and services between these two regions, forcing a continuous review of strategies to mitigate risks and take advantage of opportunities.
In his report of spring 2025the European Commission reported that the region’s economic activity began the year with a firmer foundation than expected. This behavior is expected to remain stable for the rest of the period and the recovery will take place in 2026, in a context of international uncertainty and trade tensions.
He body highlights that inflation fell to 2.4% in 2024 and that the eurozone would reach the 2% goal established by the European Central Bank during 2025 and would maintain it the following year, reflecting a constant inflationary deceleration.
The attention of global markets is focused on the trade policy of the United States, where the Trump administration has promoted the application of new tariffs on strategic partners.
The Commission It also indicates that the increase in US tariffs encourages the consumption of domestic goods, but at the same time increases the costs of imported products for consumers and companies, which represents a negative impact on supply.
Currently, the euro reflects various controversies related to its permanence and stability within the Eurozonedue to economic, political and structural challenges that have tested the unity and resilience of the single currency. The Organization for Economic Cooperation and Development (OECD) has revised downwards the euro zone’s growth prospects for this year, placing them at just 1.0%, mainly due to the weakness of investment, persistent inflation and geopolitical and commercial risks that affect consumer and market confidence.
One of the main current criticisms of the euro revolves around structural flaws in the economic governance of the European Monetary Union (EMU). Experts point out the absence of a solid banking union that ensures effective regulation and an efficient mechanism to resolve financial crises, as well as the lack of a fiscal union that can issue common debt and make budget transfers to face negative economic shocks. These deficiencies limit the ability to react to crises and contribute to debates about the long-term viability of the euro without profound reforms. In the monetary field, the European Central Bank (ECB) has adopted measures such as reducing interest rates in January 2025 to stimulate the economy, in the face of still high inflation and internal economic pressures that slow growth. However, weak external demand and competitiveness problems continue to weigh down euro zone exports, complicating economic recovery and generating uncertainty about the effectiveness of current policies to strengthen currency stability.
