The euro fell against the US dollar

The euro exchange rate against the US dollar collapsed almost to parity and stopped at $1.0072 per euro, after which it rebounded to the level of 1.011. This is evidenced by trading data .

The European currency has faced unprecedented pressure amid a new round of the energy crisis caused by a decrease in gas supplies from Russia. The shortage of energy resources led to a sharp rise in gas prices and accelerated inflation in the region. The depreciation is also associated with the soft monetary policy of the European Central Bank (ECB), which, despite record inflation rates, still does not raise the rate - at the June meeting, the regulator kept it at 0% and announced its growth only from July.

The US is several steps ahead of its European counterparts. In 2022, the Fed has already raised the base rate twice, which helped to slightly reduce inflation and strengthen the national currency. At the same time, the markets are laying down a further increase in the rate due to fears that the peak of inflation has not yet been passed.

Currency speculators expect from the European currency not only parity with the dollar, but even lower drawdown - to the level of 0.985 dollars per euro; some traders believe that the single European currency will go even lower, thus setting a historical anti-record. At the moment, the euro against the dollar is trading near the lows over the past 20 years.

American Daily Newspaper

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