The euro weakened against the US dollar at the close of February, impacted by a combination of economic data releases and shifting market sentiment. Throughout the month, investors closely monitored key economic indicators, including inflation figures, employment data, and manufacturing output, which contributed to fluctuations in the currency pair.

Concerns regarding the Eurozone’s economic recovery also weighed on the euro. Uncertainty surrounding fiscal policies and debt levels in several member states added to the downward pressure on the currency.

Conversely, the US dollar benefited from positive economic data and expectations of continued monetary policy tightening by the Federal Reserve. This divergence in economic outlooks further supported the dollar’s strength against the euro.

Market analysts suggest that the euro’s performance in the coming months will depend on the trajectory of economic growth in the Eurozone and the evolving monetary policy stances of the European Central Bank and the Federal Reserve.