ECB President Christine Lagarde attributed the euro’s rise against the US dollar to Donald Trump’s unpredictable policies, which have eroded market confidence in the dollar. In an interview with La Tribune Dimanche, Lagarde noted that, contrary to typical trends where the dollar strengthens during global uncertainty, the euro has gained ground due to distrust in Trump’s leadership. She described the US as mired in “permanent uncertainty,” driving investors toward Europe’s stable economic and political environment.

Lagarde sees this as an opportunity for the EU to deepen integration, urging faster progress on initiatives like the digital euro and a single capital market. She emphasized the importance of central bank independence, subtly criticizing Trump’s attacks on the Federal Reserve. ECB Vice President Luis de Guindos and executive board member Isabel Schnabel echoed her call for stronger EU unity to elevate the euro as a global reserve currency. Schnabel highlighted the need for a robust bond market and revisited the idea of joint EU debt to fund public goods, seizing the moment as the dollar weakens against major currencies.