The two main currencies on the planet are in the same cart. In September, the dollar reached its maximum exchange rate against the euro. But today the euro is worth significantly. The main indicator of the euro-dollar currency pair is the US interest rate. When it rises, the dollar tends to rise and the euro tends to fall. When it descends, the movement is usually opposite. For example, AvaTrade offers an economic calendar with the dates of the Federal Reserve meetings that determine US interest rates. Looking to the future, CaixaBank Research predicts a further devaluation of the dollar in the medium term. According to this agency, the euro-dollar exchange rate will be 1.1 at the end of 2023 and 1.15 at the end of 2024. Photo: Wikipedia Despite the United States having the largest economy in the world, the end is often speculated of the dollar's reign. More recently, the slowdown in US GDP and high local inflation have exacerbated this compensation. Another factor will be the creation of the BRICS bloc currency, which includes Brazil, Russia, India, China and South Africa. According to a report published in China Daily in April, the combined gross domestic product of the BRICS is higher. that of the G7 and The new currency that will be created this year could replace the dollar. The G7 includes the United States, Canada, United Kingdom, France, Italy, Germany and Japan, but the dollar represents about 60% of the world's reserves. The euro comes in second place and represents around 20%. The Chinese renminbi is worth less than 3% and the currencies of other BRICS countries are stable. Dilma Rousseff is the president of the New Development Bank, also known as the BRICS bank, in Shanghai. Last year, the Federal Reserve raised interest rates earlier and faster than most of its peers, significantly boosting the dollar. But with the current decline in inflation in the US, the Fed is expected to refrain from raising interest rates, or even begin to reduce them. Armed conflict The first months of Russia's new invasion of Ukraine, which began in February 2022, had its effects on the European Union's economy. The economy was also hit because inflation forced the European Central Bank to tighten monetary policy. The euro reached an all-time low against the dollar last year. High inflation often requires monetary tightening, which often leads to higher interest rates. High interest rates make borrowing more expensive, reducing spending and cooling the economy. Another measure used by central banks is to increase reserve requirements, which prohibit banks from lending interest on their deposits. Currently, the euro is the currency in 20 countries. The idea of a single European currency was born in the 1960s and finally took shape in 1999. Since then, countries like Germany have enjoyed strong economic growth, while Greece and other countries have faced crises and fiscal austerity. In the latest World Economic Report, the United States economy is expected to grow by 1.5% in 2023 and 0.9% in 2024, compared with 0.8% and 1.4% and 5.3% in the euro area and 4 .9% from China.Is it better to invest in euros or dollars?
The two main currencies on the planet are in the same cart. In September, the dollar reached its maximum exchange rate against the euro. But today the euro is worth significantly. The main indicator of the euro-dollar currency pair is the US interest rate. When it rises, the dollar tends to rise and the euro tends to fall. When it descends, the movement is usually opposite. For example, AvaTrade offers an economic calendar with the dates of the Federal Reserve meetings that determine US interest rates. Looking to the future, CaixaBank Research predicts a further devaluation of the dollar in the medium term. According to this agency, the euro-dollar exchange rate will be 1.1 at the end of 2023 and 1.15 at the end of 2024. Photo: Wikipedia Despite the United States having the largest economy in the world, the end is often speculated of the dollar's reign. More recently, the slowdown in US GDP and high local inflation have exacerbated this compensation. Another factor will be the creation of the BRICS bloc currency, which includes Brazil, Russia, India, China and South Africa. According to a report published in China Daily in April, the combined gross domestic product of the BRICS is higher. that of the G7 and The new currency that will be created this year could replace the dollar. The G7 includes the United States, Canada, United Kingdom, France, Italy, Germany and Japan, but the dollar represents about 60% of the world's reserves. The euro comes in second place and represents around 20%. The Chinese renminbi is worth less than 3% and the currencies of other BRICS countries are stable. Dilma Rousseff is the president of the New Development Bank, also known as the BRICS bank, in Shanghai. Last year, the Federal Reserve raised interest rates earlier and faster than most of its peers, significantly boosting the dollar. But with the current decline in inflation in the US, the Fed is expected to refrain from raising interest rates, or even begin to reduce them. Armed conflict The first months of Russia's new invasion of Ukraine, which began in February 2022, had its effects on the European Union's economy. The economy was also hit because inflation forced the European Central Bank to tighten monetary policy. The euro reached an all-time low against the dollar last year. High inflation often requires monetary tightening, which often leads to higher interest rates. High interest rates make borrowing more expensive, reducing spending and cooling the economy. Another measure used by central banks is to increase reserve requirements, which prohibit banks from lending interest on their deposits. Currently, the euro is the currency in 20 countries. The idea of a single European currency was born in the 1960s and finally took shape in 1999. Since then, countries like Germany have enjoyed strong economic growth, while Greece and other countries have faced crises and fiscal austerity. In the latest World Economic Report, the United States economy is expected to grow by 1.5% in 2023 and 0.9% in 2024, compared with 0.8% and 1.4% and 5.3% in the euro area and 4 .9% from China.