Euro's Surge Challenges Expectations of Dollar Parity

Reported about 7 hours ago

The euro's recent rise has validated the forecasts of strategists from banks like Morgan Stanley and Commerzbank, who opposed predictions that it would reach parity with the dollar. After falling to around $1.01, the euro has surged over 4% this week to above $1.08, marking its best weekly gain since 2020. Analysts attribute this turnaround to increased defense and infrastructure spending in Europe and a potential slowdown in interest rate cuts by the European Central Bank. Despite some optimism, many forecasters still predict the euro will end the year lower.

Source: YAHOO

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