At 6:00 PM (Lisbon time), the euro was trading at $1.1475, compared to $1.1541 at the same time on Tuesday.
The euro also fell against the pound and the yen.
The European Central Bank (ECB) set the euro’s reference exchange rate at $1.1527.
The German economy contracted by 0.1% in the second quarter compared to the previous three months, according to preliminary data on the evolution of Germany’s Gross Domestic Product (GDP) released today by the federal statistics agency (Destatis).
In the first quarter of the year, Germany’s GDP had increased by 0.3% after a decline of 0.2% in the last three months of 2024, thus ending a second period of recession.
The trade agreement between the US and the European Union (EU), which sets US tariffs on European products at 15%, has also influenced the euro’s depreciation against the dollar.
The agreement also includes the EU’s commitment to purchasing US energy worth $750 billion (approximately 642 billion euros) – specifically aiming to replace Russian gas, an additional investment of $600 billion (514 billion euros), and increased acquisitions of military equipment.
Across the Atlantic, the dollar’s trajectory was supported by the robust performance of the American economy, whose GDP grew by 3% between April and June, recovering from the decline observed in the first quarter, which was spurred by the trade war.
Exchange Rates………….Today…………..Tuesday
Euro/dollar…………..1.1475……………..1.1541
Euro/pound…………..0.86387…………….0.86528
Euro/yen……………..170.90…………….171.47
Dollar/yen…………..148.93…………….148.57
