The euro rose against the dollar in Monday trading, fueled by persistent worries regarding the state of the US economy. Investors are increasingly favoring the euro as the dollar faces headwinds.

This shift is largely attributed to the difference in interest rates between the Eurozone and the United States. The European Central Bank has maintained a relatively hawkish stance on monetary policy, while the Federal Reserve has been aggressively cutting rates to stimulate the US economy.

Furthermore, the economic outlook for the Eurozone appears more stable than that of the United States, which is grappling with a housing market downturn and a potential recession. This perceived stability is further bolstering the euro’s appeal.

Analysts predict that the euro could continue to appreciate against the dollar in the coming months, provided that the underlying economic conditions remain unchanged.