The euro is equal to the dollar What does the fall of the European currency mean?


The euro fell to a level equivalent to the dollar today, Tuesday, for the first time in almost 20 years, so what are the reasons for the fall of the European currency.

And the European currency is under pressure due to fears of an economic downturn in the euro area amid the ongoing energy crisis, as energy prices in Europe continue to rise.

As the reasons for the fall of the single European currency, experts pointed to the unprecedented rise in inflation in European countries, which prompted investors to flee to the dollar as a “safe haven” and a reliable means of protecting against inflation.

Apart from the European Central Bank’s monetary policy uncertainty, which only contributes to the weakness of the euro, as the central bank is expected to raise the current zero interest rate only in July.

Experts also drew attention to the issue of the US dollar appreciation against currencies in the recent period, after the decision of the US Federal Reserve System (Central Bank) to raise the interest rate in the US.

Below is a chart showing the evolution of the euro trade over the past years:

Source: RT

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