For the first time since 2002: the euro exchange rate briefly below one dollar

Status: 07/13/2022 3:18 p.m

The euro’s descent continues: After the European common currency was last in par with the US currency, the rate has now fallen below one dollar. Previously, US inflation had risen.

The euro continued to fall after reaching parity with the dollar. In the afternoon, the European common currency traded briefly at $ 0.9998 in London. The rate fell below one dollar for the first time since December 2002.

The common currency is under pressure because of an impending recession due to the Ukraine war and the lower interest rates in the euro zone compared to the USA.

Inflation in the US at high levels

US inflation had previously climbed to its highest level since November 1981. In the USA, the central bank is taking a tough stance against high inflation and has already raised key interest rates several times. That strengthens the dollar.

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