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USD/EUR Exchange Rate vs Fed Funds Rate

Written by Jere Salmisto, Founder & Quantitative Systems Builder, CalcFi·Reviewed by CalcFi Editorial·Last reviewed 2026-06-01
TL;DR

US Dollar to Euro Exchange Rate is 1.16 and Federal Funds Rate is unavailable as of 2026-06-01. How Fed policy moves the dollar against the euro. Interest rate differentials explained.

Source: Fed H.10 via FRED (DEXUSEU) · Federal Reserve via FRED (DFF)

US Dollar to Euro Exchange Rate
1.1603
Live· 0m ago
Federal Funds Rate
—
Unavailable· no data
2025-092026-05

Currency values follow interest rate differentials. When US rates rise relative to Eurozone rates, capital flows into dollars seeking higher yield, and the dollar strengthens against the euro.

Over 25 years, the USD/EUR rate has been strongly influenced by Fed vs ECB policy divergence. The 2015-2020 period of Fed tightening while ECB stayed negative pushed EUR down from 1.39 to 1.04. Post-2022 Fed aggressive hikes while ECB lagged caused similar divergence.

For Americans: stronger dollar makes European travel cheaper and imported goods cheaper, but hurts US exporters and companies with European revenue (they translate fewer dollars from each euro). For investors: a strong dollar typically drags on S&P 500 earnings since ~40% of revenue comes from overseas.

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Sources & Citations

  1. US Dollar to Euro Exchange Rate — Fed H.10 via FRED (DEXUSEU) — fred.stlouisfed.org/series/DEXUSEU
  2. Federal Funds Rate — Federal Reserve via FRED (DFF) — fred.stlouisfed.org/series/DFF
  3. FRED (Federal Reserve Economic Data) — time-series archive for US macro indicators — fred.stlouisfed.org
  4. Bureau of Economic Analysis — GDP, personal income, regional data — bea.gov
Methodology & Assumptions

Values for US Dollar to Euro Exchange Rate come from Fed H.10 via FRED (DEXUSEU)[1]; values for Federal Funds Rate come from Federal Reserve via FRED (DFF)[2]. Both series are fetched at build time and refreshed every 24 hours via ISR.

The daily cadence for US Dollar to Euro Exchange Rate and daily cadence for Federal Funds Rate mean the live value you see reflects the most recent public release, not a real-time quote.

Historical charts show the last 10 years (~260 trading days for daily series). Sparklines are visually uniform; small moves may be compressed.

Correlation and spread analyses (where present in the narrative) use Pearson correlation over the overlapping window.

CalcFi republishes publicly available government economic data[3][4] and does not provide financial advice.

Last reviewed reflects the most recent data point across both series; on ISR revalidation the visible date updates when new data arrives.

Data sourced from [1] Fed H.10 via FRED (DEXUSEU) and [2] Federal Reserve via FRED (DFF). Published by CalcFi Editorial. Last reviewed 2026-06-01. CalcFi publishes publicly available government economic data and does not provide financial advice.