Euro falls to parity with the US dollar for the first time in two decades
The U.S. dollar is now equal to the euro in value for the first time in two decades as Europe grapples with growing recession fears and the fallout from Russia’s war in Ukraine.
The euro suffered a severe slump this year with $0.998 on the foreign exchange market at 12:45 GMT on July 13. This is the euro’s lowest level since December 2002.
The two currencies reached parity Wednesday morning, according to Bloomberg, after the euro suddenly lost value following the release of alarming U.S. inflation data which reported that inflation hit a fresh 40-year record in June 2022.
Euro, a common currency in 19 European Union member countries, has weakened during the war in Ukraine that sent shock waves through global food and energy markets. The European Central Bank also lags behind peer institutions such as the Federal Reserve in tackling rising inflation.