New York, July 17 (V7N) – Central banks have significantly increased their purchases of eurozone bonds this year, signaling a positive outlook for the euro as the European bloc aims to diversify its exposure away from U.S. markets.
 
This shift in investor behavior is seen against the backdrop of rising concerns over the U.S. dollar’s safe-haven status. The dollar, which remains the world’s primary reserve currency, has experienced a sharp decline of 9% in 2025 so far.
 
Contributing to this downturn are U.S. President Donald Trump’s ongoing confrontations with long-standing allies on trade and security issues, coupled with his critical remarks toward the Federal Reserve. These factors have undermined global confidence in the dollar, prompting central banks and investors to seek alternatives.
 
The increased demand for eurozone bonds not only supports the euro but also reflects a broader strategy by global financial institutions to reduce reliance on the U.S. financial system. Market analysts suggest this trend may continue if geopolitical tensions and economic policy uncertainties in the U.S. persist.
 
As the year progresses, the dynamics between the euro and the U.S. dollar will remain a key indicator of global economic shifts, influencing trade, investment flows, and monetary policies worldwide.
 
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