U.S. President Donald Trump announced a decision to impose reciprocal tariffs on imported goods worldwide, causing the euro's value to surge.
On the 3rd (local time), in the foreign exchange market, the euro rose more than 1.5% compared to the previous day, surpassing $1.10 for the first time in over six months since October 3rd of last year.
The dollar index, which measures the dollar's value against major currencies, fell more than 1.5%, dropping below 102 at one point during the session.
Experts interpreted this as a flight to safe-haven assets such as the euro and yen, instead of the dollar, amid a crash in risk assets due to tariff fears and growing concerns about a U.S. economic recession.
As recent U.S. economic indicators worsen and President Trump pushes forward with tariff policies, Europe has been stimulating its economy, particularly through the defense industry, leading to continued euro buying since mid-January this year.
Euro (Photo by Wikipedia)
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