Currency fluctuations impact economic growth: Dollar depreciation hinders US, Euro appreciation boosts.
Exchange rates for the dollar and euro have been fluctuating since mid-2014. A study using a model called NiGEM found that different types of exchange rate changes can have different effects on the economy. From January 2017 to February 2018, a weaker dollar did not lead to stronger US growth, while a stronger euro may have been positive for growth. The nature of the exchange rate shocks, like changes in market sentiment or risk premium, can impact prices and growth.