Euro Strengthens Against the Dollar: 2026 Expectations

The Impact of the Euro on the Dollar is Growing

The traditional dominance of the US Dollar in global financial markets is being seriously questioned in recent days. The Euro, as the common currency of the European Union, is showing signs of strengthening against the Dollar. In particular, the interest rate cuts implemented by the US Federal Reserve (Fed) stand out as an effective factor in the Euro's appreciation.

Exchange Rates and Performance Analysis

The Dollar, which entered 2025 at 35.3585 TL, has recently reached historic highs of 42.6953 TL, gaining approximately %21 in value. Meanwhile, the Euro also started 2025 at 36.6255 TL and surged to 50.1272 TL, reflecting an increase of %36.81. These figures indicate an increasing attractiveness of the Euro among investors.

Central Bank Policies and Future Expectations

Economists point out that the European Central Bank (ECB)'s implementation of balanced monetary policies could make the Euro a stronger alternative by 2026. Euro, which is a candidate to take the place of the Dollar in the eyes of investors, gains advantages in an environment created by interest rates and geopolitical uncertainties.

Predictions of Financial Institutions

Major financial institutions like Deutsche Bank and Goldman Sachs predict that the Dollar will lose value and the Euro will strengthen during this process. According to forecasts by Commerzbank, based in Germany, the Euro is expected to reach 67.10 TL in 2026 and 68.40 TL in 2027. For the Dollar, a forecasted range of 45.00 TL and 57.00 TL is anticipated for 2026.

The Effect of Dollar Weakness

The limitation of the Dollar's global power paves the way for investors to evaluate alternative assets. The Dollar index, which started the year at 109 points, has declined to 96 points and is currently trading around 98 points. Experts emphasize that the decline in the Dollar is leading investors to turn toward the Euro and other currencies.