After nearly 20 years of the euro being superior to the dollar, both currencies reached parity on Tuesday, July 12.
Dollar is now equal to Euro for the first time in 20 years.
This comes after 20 years of euro being superior to the dollar.
However, both currencies reached parity on Tuesday, July 12.
As at Tuesday, 1 EUR equals 1 USD. The shift means European companies and consumers will pay more for the goods and services they import, while European exports become immediately cheaper in international markets. The euro has experienced a dramatic loss of value since early February when it was worth over $1.13.
It comes as the European Union has seen inflation exacerbated by Russia’s invasion of Ukraine.
EU and U.S. sanctions have reduced the flow of Russian oil into Europe, and the currency block is much more dependent on Russian energy than the U.S.
The euro first hit price parity with the dollar in December 1999, just less than a year after its debut at $1.17. For a turbulent three years surrounding the 2001 dot-com crash, the dollar remained stronger than the euro. Worried investors treated the US currency as a safe-haven asset to hold during the burst of the tech bubble. But after 2003, the euro has remained stronger than the US dollar.
The parity of both currencies is a sign that investors are worried that a looming economic crisis will seriously affect Europe.
READ ALSO: Buhari should resign, hand over to Osinbajo – Northern Elders spokesman, Baba-Ahmed
Are you an artiste? Do you want your music to go viral and reach a large number of audience? Promote your music and Submit your story on Ujuayalogusblog.com by clicking here. For Advert Inquiries Tel/+44(0)7590363984
For More: Subscribe to Ujuayalogusblog.com
No comments:
Post a Comment