As of May 24, 2025, at 12:36 PM Eastern European Time, the US dollar continues to weaken, reaching its lowest level since 2023 – the DXY index has fallen to 92.5. This has significant implications for Europe, as analysts note.
Firstly, a weaker dollar makes European exports, particularly cars and technology, more expensive for American consumers, which may reduce the competitiveness of countries like Germany. According to the European Chamber of Commerce, EU exports to the US in 2024 amounted to $500 billion, and its share may shrink. Secondly, the import of energy resources priced in dollars becomes cheaper for Europe, temporarily reducing inflationary pressure – Brent oil prices have fallen to $78 per barrel.
Thirdly, a weaker dollar stimulates capital inflow into Europe: investors seek higher returns in euro-denominated assets. This can strengthen the euro, which has already risen to $1.18. However, excessive strengthening of the euro threatens the region's economic growth. The European Central Bank is closely monitoring the situation, as the balance between exports and inflation remains fragile. Stay tuned for updates on #MiningUpdates .
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