On Thursday, June 11, 2025, the euro exchange rate surpassed the mark of 1.15 US dollars for the first time in about seven weeks. The current rate is around 1.1504 USD per euro, marking the highest level since late April and indicating a significant appreciation of the euro against the US dollar.
Background and Significance
Exchange Rate Development
- Pinnacle in April: The highest level of the year was reached on April 21 with about 1.1573 USD per euro.
- Trough in January: The lowest value was around 1.0178 USD per euro at the beginning of January.
- Current Development: After a phase of weakness, the euro has recovered in recent weeks and is now clearly above the average value of about 1.0874 USD for the year.
Relevance for Investors and the Economy
- Trade Relations: A stronger euro makes imports from the USA cheaper for companies in the eurozone.
- Exports: At the same time, European exports to the USA become more expensive, which can impair the competitiveness of European products in the American market.
- Import Prices: Cheaper import prices can have a positive effect on inflation or at least mitigate imported price increases.
Historical Context
The current development is remarkable:
- Annual Average (2025): The average exchange rate is about 1.0859 to 1.0874 USD per euro.
- Comparison to Previous Years: In the summer of 2022, the rate reached a twenty-year low; since then, however, the trend has reversed.
Summary
The rise of the euro above the mark of 1.15 US dollars marks an important turning point after several weeks of weaker quotations. For investors and companies in Europe, this means both opportunities and risks: while import costs may decrease, the risk for export companies rises due to higher prices in international markets. The further development remains dependent on global economic factors such as monetary policy and economic forecasts.