The single European currency has faced misfortune again. Its exchange rate on the ICE market plunged to 1.0660 against the US dollar, the lowest mark since May 1, 2024.
According to analysts, the single currency hit a five-month low and this might not be the end of the bear market. On November 11, the EUR/USD pair traded at 1.0663. By midday, the instrument had dropped by 0.51% compared to the previous trading session's closing level, instantly reaching 1.0660. The euro's decline accelerated further, with a drop of 0.55%. By the evening, EUR/USD sank to 1.0640, marking a significant 0.73% slide.
Analysts say the euro was bruised by several factors, primarily Donald Trump's victory in the US presidential election. Furthermore, Trump announced plans to impose import tariffs ranging from 10% to 20% on various overseas goods, including European products.
The US dollar owes its strength to Trump's protectionist economic policies which could harm the export ambitions of the European Union's industrial sector. Notably, major EU players, such as automotive giants Daimler Truck and Volkswagen, heavily rely on the US market.
In conclusion, experts warn that the euro might continue to lose ground amid these negative developments.
