The euro fell to April levels against the dollar and has already lost 3% over the year

The euro continues to show weakness in its battle against the dollar, with a tepid decline of around 0.3% on Wednesday leaving the European currency at levels not seen since April, at $1.068.

So far this year, the European currency has lost just over 3% against the US currency. With interest rates reaching multi-decade highs in Europe, the UK and the US, being the main reference currency is entering the competition. In this sense, Pedro del Pozo, Director of Financial Investments at Motualidad, explains that facing the second half of the year, the euro/dollar will remain the same as it has been so far as long as the United States continues without lowering inflation rates. “Of course, once the situation returns to normal, we could have a medium-term eurodollar relationship returning to areas that have not been seen for a long time,” the expert explains.

Therefore, with the presidential elections approaching in November, Del Pozo goes on to say: “We have to be aware that the CPI in North America is much higher than its European counterpart. This is a situation that, if it continues like this, could lead to a rise in the consumer price index in North America. Inflation. The reduction in Europe while inflation in the United States could slow this process.

“In the short term, the perspective is that it will continue to remain within this price range, especially in the lower region as long as inflation in the US remains higher than in Europe. Once the monetary normalization process progresses, the relationship between both currencies should return further.” towards the high side, Even in the medium term to areas we have not seen for a long time such as a $1.15 relationship in the signal between the euro and the dollar“, concludes the expert.

With regard to exchanging the euro with other major currencies such as the pound sterling or the yen, it loses 2.5% against the British currency and gains more than 10% against the yen, and is at the level of 171.6 yen.