Euro hits 2025 high vs. U.S. dollar amid European defense spending boost

Published 04/03/2025, 13:26
© Reuters

Investing.com -- The euro has reached a new high for the year against the greenback, fueled by expectations that increased European defense spending will stimulate the region’s economy.

The common currency rose 0.5% to $1.0548, its highest point since December 10, according to Investing.com’s data.

The European Union announced plans to propose extending €150 billion ($158 billion) in loans to enhance the continent’s defense spending. This move has contributed to the euro’s significant rise, nearly 4% from a two-year low it experienced just a month ago.

The increased defense capabilities in the continent are seen as a key factor in the euro’s recent recovery.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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