Euro continues to decline, equates to dollar first time in 20 years
On July 12, the euro exchange rate continued to fall and temporarily equaled the dollar rate
It is reported by Reuters and Investing.
As noted, the last time this happened was in December 2002.
After the euro reached parity with the dollar around noon Kyiv time, the euro bounced back up, and by 2:00 p.m., it was already 1.0026 per dollar.
The stock markets also fell as investors were concerned about the prospect of further policy tightening by the European Central Bank and feared about the state of the economy around the world.
Thus, the dollar's role as a "haven currency" for investors has strengthened in recent weeks. As a result, the US currency rose to a twenty-year high against several other currencies.
The dollar index added 0.3, while the pound hit another two-year low, and the yen was close to its weakest level in more than two decades.
What happened to the euro?
The euro has become a particularly vulnerable currency.
Such changes occurred due to the impact of the jump in natural gas prices on the regional economy and the war in Ukraine.
And also the fact that the European Central Bank lags behind rivals in raising interest rates.
Reuters writes that the mood of entrepreneurs in the eurozone is also deteriorating due to fears about the recession.
Also high on the list of investors' worries is that some Chinese cities, including the commercial hub of Shanghai, are imposing new COVID-19 restrictions starting this week to curb recent outbreaks.
The rapid rise in the energy cost in Europe is also raising serious concerns, as the largest single pipeline carrying russian natural gas to Germany has been shut down, allegedly for repairs.
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