The euro to USD exchange rate fell to 1.1353 on June 24, 2026, marking the currency’s lowest point of the year as the greenback continues to strengthen against a weakening euro.
The decline follows a sharp reversal from the euro’s 4.5-year high in January 2026, when EUR/USD briefly approached 1.20. Since then, the pair has retreated steadily, with the euro losing ground to safe-haven dollar buying and broader economic headwinds in the eurozone.
Energy shocks have weighed heavily on the euro this year. According to Reuters, the euro has been on a downward trend since hitting its January peak due to energy shocks and safe-haven buying of the dollar. Europe remains more sensitive to rising oil and gas prices than the US because of its lower domestic energy supply, making the currency vulnerable when energy costs spike.
Interest rate divergence between the Federal Reserve and the European Central Bank has also shaped currency markets. The ECB raised key interest rates to 2.25%, 2.40%, and 2.65% on June 17, 2026, but the Federal Reserve’s policy rate remains higher. The rate gap has favored dollar-denominated assets, as investors seek the higher yields available in US markets, pulling capital away from euro-denominated investments.
The euro’s weakness contrasts sharply with its performance in 2025. The currency had strengthened significantly during that year, gaining around 12% against the dollar as market sentiment shifted. However, 2026 has brought renewed pressure. The euro weakened to $1.14, its lowest level since June 2025, according to Trading Economics data.
Looking ahead, analysts remain divided on the euro’s trajectory. Most forecasters expect EUR/USD to trade in a range between 1.13 and 1.21 by year-end, with the pair vulnerable to further declines if energy prices remain elevated or if the Fed maintains higher rates relative to the ECB.
Sources
- Trading Economics — EUR/USD exchange rate on June 24, 2026, and historical low since June 2025
- Exchange Rates UK — Yearly low of 1.1381 USD on June 23, 2026
- European Central Bank — Interest rate decision on June 11, 2026, raising rates effective June 17
- Reuters — Euro downtrend analysis citing energy shocks and safe-haven dollar buying since January 2026 peak
