The ECB is concerned about the strengthening of the euro

Representatives of the ECB express concern about the strengthening of the euro, which has grown by 14% since the beginning of the year amid increased investor interest in European assets. Although a strong euro makes imports cheaper, it reduces export competitiveness and may keep inflation below target, raising concerns about a slowdown in economic activity in the eurozone.

Among the possible problems, the weak growth of the region's economy and the US tariff policy also stand out. ECB Vice President Luis de Guindos noted that the exchange rate level of about $ 1.18 is acceptable, but exceeding the mark of $ 1.20 will be difficult to ignore. In Thursday morning trading, the euro was at $1.1792, while the dollar index dropped to 96.83, down about 10% since the beginning of the year.

The role of the dollar as a global safe haven currency was discussed at the ECB forum. Donald Trump's protectionist policy and his criticism of Fed Chairman Jerome Powell have raised concerns about the independence of the US Central Bank, which could weaken the dollar's position. ECB President Christine Lagarde stressed that investors are looking for alternatives to the dollar, adding that the weakness of the US currency indicates possible structural problems.