05.03.2025 14:32
The impact of trade wars and the evolution of the US-EU rivalry into a new dimension have led the European Union's common currency, the euro, to reach a historic record. For the first time, the euro surpassed the 39 lira mark, reaching 39.10.
The discussions surrounding the additional tax measures of U.S. President Donald Trump and the ceasefire in Ukraine are causing a sense of unease in global markets. In this context, the Euro, which gained nearly 1% today, reached 39.10 lira due to the European Union's (EU) plan to increase defense spending.
The tension from the trade war has pulled dollar prices back somewhat. Following retaliations from China and Canada, the Dollar Index fell below the 105 level, reaching a three-month low. The index recorded a 2.5% decline over the last three days.
EURO STRENGTHENED BY NEWS FROM GERMANY
In response to the dollar's decline, the euro gained value. This was influenced by Germany's 500 billion euro plan. Political parties negotiating to form a coalition in Germany agreed to loosen the borrowing limit to establish a 500 billion euro infrastructure fund and increase military spending. The euro/dollar exchange rate rose to 1.072 this week, with daily increases exceeding 3%, marking the highest level since November 2024.
As the euro strengthened against the U.S. dollar, it also appreciated against the Turkish Lira. The euro/TL reached 39.1 with an increase of nearly 1%.