The US economy has been in turmoil since Donald Trump’s win. First up, Bitcoin has taken off, hitting a record high of $75,359 as of right now.
However, this is not the only issue; the euro has also gone the opposite way, falling sharply in value relative to the dollar. At less than 1.0700, this is the lowest number in the previous four months. Although it was at a value of 1.10 in the start of 2024, the decrease is anticipated to be considerably more significant.
Why did the euro depreciate after Donald Trump won the election?
The markets’ expectation that Trump’s economic initiatives will boost the US economy is the reason behind the Euro’s decline versus the US dollar.
Following his win, Trump pledged to lower corporate taxes and increase tariffs, which would increase domestic demand and generate employment, favoring inflation and strengthening the dollar.
However, this protectionist approach has an impact on economies that rely on exports to the US, like the Eurozone. The euro has been under selling pressure from markets who worry that new trade restrictions and tariffs will hinder the growth of the European economy.
Trump’s tariffs may actually deduct up to 1.5 percentage points off Europe’s GDP, according to a European bank, and the European Central Bank (ECB) may need to take severe steps in response, like lowering interest rates.
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Early 2024’s top ten coins in terms of value
Significantly influenced by the price of oil:
- Kuwaiti dinar (KWD): $3.25.
- Bahraini dinar (BHD): $2.65.
- Omani rial (OMR): $2.60.
- Jordanian dinar (JOD): $1.41.
- Pound sterling (GBP): $1.28.
- Cayman Islands dollar (KYD): 1.20 USD.
- Gibraltar pound (GIP): $1.27.
- Swiss franc (CHF): $1.17.
- Euro (EUR): 1.10 USD.
- United States Dollar (USD): 1.00 USD.
