The euro surpassed $1.20 for the first time since 2021, fueled by a weaker dollar and U.S. policy uncertainty.

The euro rose above $1.20 for the first time since 2021, driven by a weakening U.S. dollar amid uncertainty over Donald Trump’s tariff policies and political instability in the U.S. The stronger euro lowers import costs for Europeans and boosts purchasing power but makes U.S. travel and goods more expensive. Eurozone exporters face challenges as their products become pricier abroad. The shift reflects growing investor confidence in Europe’s stable institutions compared to U.S. policy volatility, with European assets gaining appeal due to more predictable fiscal policies and stronger market performance.