Euro falls to weakest versus dollar since 2022 amid US tariff concerns

Expectations are European Central Bank will cut interest rates more aggressively than the Federal Reserve

- Bloomberg

The euro fell to its weakest level versus the dollar in over two years amid concerns about Europe's economy and monetary policy divergence with the US. The common currency fell 0.4% to $1.0314, the lowest level since November 2022, extending its decline since late September to around 8%.

The pound also underperformed its main peers to trade at the weakest level since May. The euro has been dragged lower by fears that the region's export-orientated economies will be hit by US trade tariffs and expectations the European Central Bank will cut interest rates more aggressively than the Federal Reserve.

Political instability in the bloc's biggest economies has also added to the pressure.