Germany in Recession: The world’s fourth-largest economy is now engulfed in recession. Many European countries are already in recession. The shadow of recession has begun to darken over Germany The euro fell sharply on Thursday. At the same time, the dollar is rising faster than in two months. Because of this, the dollar is currently stronger than other currencies in the world. Rating agency Fitch raised questions about this. The agency has placed the US in the negative category of ‘AAA’ debt rating.
In America, the debt ceiling needs to be agreed between the government and the opposition before the deadline. In this regard, the US Treasury Secretary told the government that he did not have enough money to pay the bills. At the same time, the euro has been depreciating for months due to the economic situation in Europe. As the euro falls, the dollar strengthens.
The latest sign of Europe’s weakness comes from Germany. Europe’s economy contracted in the first quarter. Europe has been in recession since negative growth in the fourth quarter of 2022.
US dollar status
The US dollar index is gradually strengthening against the euro. It is now up 0.3 percent at 104.16. It is the highest since March 17. The euro currency was down about 0.2 percent. It fell to $1.0715 after a two-month low. Sterling also eased 0.1 percent after hitting its weakest level since April 3 at $1.2332.