Read about why the euro is losing out to the dollar in the competition in the RIA Novosti article.
Demand for euros in the world is declining
In 2025, the euro will continue to defend its position against the dollar, believes private investor and founder of the School of Practical Investments, Fedor Sidorov.
"Following the Federal Reserve, the European Central kuwait mobile database Bank has been cutting rates throughout the autumn of 2024. However, the euro's position is not as stable as the dollar's. The market has already seen a situation of a rapid reduction in the difference between these two currencies. So, an alarming trend for Europeans towards the parity of the two currencies has formed. And the ECB is simply obliged to copy the Fed's policy (we expect a quick rate cut following the decision of the American financial regulator on December 18 to 4.25%-4.5% per annum). This trend may intensify in 2025, as demand for the euro in the world is declining," the expert says.
Against the backdrop of rising energy prices, manufacturing plants in Europe are closing en masse and moving to the United States, where attractive benefits await migrant entrepreneurs. Thus, businesses are literally exchanging euros for dollars, Sidorov notes.
Also, according to the investor, the euro has almost completely lost its position in such a large market as Russia (deposits were made in euros, payments were made in euros, there were mortgage products in euros, and Russians bought euros en masse during the holiday season).
According to Sidorov’s forecasts, the euro exchange rate at the beginning of 2025 will be in the range of 112-122 rubles.
The euro exchange rate in 2025 will be around 100-120 rubles
The euro in Russia is currently in a dual position - for example, many Russian banks continue to trade dollars in exchange offices, but have abandoned the euro, says leading analyst at AMarkets Igor Rastorguev.
The trend of decreasing demand for the euro in the world is also supported by the initiative of the BRICS countries to create their own payment system (there is no talk of a single currency yet), when it will be possible to make payments freely without the participation of Western countries, the expert adds.
"US President-elect Trump has already declared a trade war on all BRICS participants who support the creation of an independent settlement system and will use it. The European Commission has few such levers of pressure, sanctions remain. Therefore, there are many factors of pressure on the European currency," says Rastorguev.
According to his forecast, the euro exchange rate at the beginning of 2025 will be 100-120 rubles, but it may be adjusted depending on the situation.