Dollar continues to grind higher; euro now slightly lower on the day at $1.1777, versus $1.18347 earlier

Dollar continues to grind higher; euro now slightly lower on the day at $1.1777, versus $1.18347 earlier

Dollar Gains Momentum as Euro Retreats to $1.1777
The U.S. dollar continued its upward trend on Monday, with the euro slipping to $1.1777 by 10:00 a.m. ET, down from $1.18347 earlier in the session. The move reflects broader dynamics in global currency markets, driven by divergent monetary policy trajectories and macroeconomic fundamentals.

The EUR/USD pair has traded within a 52-week range of 1.0360 to 1.2079, with a year-over-year change of 12.56%. Recent volatility has been amplified by the European Central Bank's (ECB) cautious approach to tightening, compared to the Federal Reserve's more aggressive rate-hiking cycle. The euro's decline this week follows a -0.733% drop compared to its value seven days ago, with intraweek fluctuations reaching a high of 1.1877 on February 15 and a low of 1.17525 on February 19.

The dollar's strength aligns with its role as a global reserve currency and its widespread use in international trade. Key drivers include the Fed's focus on curbing inflation, which has bolstered demand for dollar-denominated assets. Conversely, the Eurozone faces challenges such as slower growth and persistent inflation, limiting the ECB's ability to raise rates aggressively.

Historically, the euro's six-month average exchange rate stood at 1.1695, with peaks and troughs reflecting broader economic pressures. Meanwhile, the U.S. current account deficit, which widened to $450.2 billion in Q1 2025, has not yet offset the dollar's appeal, underscoring the currency's resilience amid global uncertainty.

Looking ahead, the dollar's trajectory will likely remain influenced by Fed policy signals, inflation differentials, and geopolitical risks. For now, the euro's retreat highlights the dollar's enduring dominance in a market where safe-haven demand and yield differentials continue to shape sentiment.

(https://www.investing.com/currencies/eur-usd-historical-data): EUR/USD Historical Data, Investing.com
(https://wise.com/us/currency-converter/eur-to-usd-rate/history): Euro to US Dollars Historical Exchange Rates, Wise.com
(https://www.investopedia.com/trading/factors-influence-exchange-rates/): 5 Factors That Influence Exchange Rates, Investopedia
(https://www.forex.com/en-us/trading-guides/what-are-the-factors-affecting-the-value-of-the-us-dollar/): What Are the Factors Affecting the Value of the US Dollar, Forex.com