News Currency
Euro now almost equal to the dollar
The euro is now worth almost as much as the dollar. The European currency has weakened considerably due to fears of recession and a more aggressive interest rate policy by the US central bank (FED).
The so-called parity between the euro and the dollar has been in the air for a while and now seems to be becoming a reality. This morning – just after 1,0098am – the euro was equivalent to $2002. Bearing in mind the downward trend, the dollar looks set to surpass the euro for the first time since its introduction in XNUMX. For American tourists visiting Europe this summer, that's a nice windfall. The weak currency is also a boost for European exporters.
Various causes
The weak euro has several causes. The war in Ukraine, among other things, has put pressure on the European currency in recent months. Added to this is the fear of a recession. In addition, the FED is more energetic in raising interest rates than the central bank in Europe (ECB). After several hikes, the interest rate in the US is now between 1,5% and 1,75%. The ECB still maintains a negative interest rate and will only start raising interest rates this month with the aim of combating high inflation.
Wouter Job
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