U.S. Dollar Hits Five-Month Low as Germany Advances Stimulus Plan
Concerns over U.S. trade policies and optimism for Germany's fiscal stimulus drive currency market shifts.
- The U.S. dollar has declined 6% against the euro since mid-January, reflecting growing skepticism about the economic impact of President Trump's protectionist trade policies.
- Germany's constitutional court cleared the path for a parliamentary vote on a proposed 500 billion euro stimulus package aimed at infrastructure and economic growth.
- The euro remains strong, trading near a five-month high, buoyed by optimism surrounding Germany's fiscal plan.
- Central banks, including the Federal Reserve, Bank of Japan, and Bank of England, are expected to maintain current interest rates this week as they assess global economic uncertainty.
- Treasury Secretary Scott Bessent acknowledged recession risks in the U.S., while February retail sales showed a modest rebound following a sharp decline in January.