Unpredictable U.S. tariffs and trade policies have strengthened the euro against the U.S. dollar, providing new economic opportunities for Europe, said Christine Lagarde, president of the European Central Bank (ECB).
In an interview earlier this month, Lagarde said the new U.S. administration has changed the situation in the economic, political and defense fields, which are considered the three pillars of international cooperation. However, the ECB president underscored that this development presents itself as more of an opportunity than a threat.
Europe has seen challenges to the rule of law, judicial system and trade rules in the United States, and uncertainty continues, she said, adding that the continent is seen as a stable economic and political region with a sound currency and an independent central bank. European leaders must seize this opportunity and accelerate the process of deepening EU cooperation, she stressed.
This year, the U.S. dollar has been falling against a variety of currencies due to the impact of multiple U.S. government policies. The U.S. dollar index, which measures the dollar against six major currencies, has been going downward from its high of 110.18 on Jan 13, and once fell below the 98 mark. The euro-dollar exchange rate also rose to a three-year high in April.
In periods of uncertainty, the dollar usually strengthens significantly, but the opposite is happening now. According to Lagarde, the reason behind this is the loss of confidence in U.S. policies in some financial markets.
The bank president also stressed that if the EU and U.S. tariff negotiations fail, the EU needs to have strong countermeasures. It is also crucial that the European Commission is seeking consensus with other countries on this, she underlined.
Erratic US tariff policies bring opportunities to Europe: ECB president
Erratic US tariff policies bring opportunities to Europe: ECB president
Erratic US tariff policies bring opportunities to Europe: ECB president
