Short answer
The euro usually falls when the European economy looks weaker than the US, when the ECB is expected to cut rates faster than the Fed, or during global risk-off moments.
Why is the euro falling?
What happened
EUR/USD slipped as the dollar strengthened across the board.
Why it happened
Currencies move on relative interest rates and growth. If US rates stay higher than European rates, global money flows into dollars for better yield, pushing the euro down.
Why investors care
A weak euro raises the cost of imported goods (oil is priced in dollars) but helps European exporters like carmakers and luxury brands.
How it affects ordinary people
Travellers to the US pay more. European companies selling to the US earn more when they convert dollars back.
FAQ
Is a weak euro bad?
It's mixed — bad for imports and travel, good for exports and tourism into the eurozone.
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