CapitalCounselor
  • Home
  • Reviews
  • Blog
  • News
  • About Us
  • Our Team
  • Contact Us
CapitalCounselor
  • Home
  • Reviews
  • Blog
  • News
  • About Us
  • Our Team
  • Contact Us
Finance News - Euro Dropped Below US Dollar for the First Time in 20 Years

Euro Dropped Below US Dollar for the First Time in 20 Years

  • Marina Avramovic
  • July 20, 2022

On Wednesday, July 13, the euro’s value dropped below the psychologically important US dollar parity level for the first time since 2002, when it fell to $0.99.

The reason behind this drop was the Russia-Ukraine war. Namely, the war has exacerbated an energy crisis and, if nothing is done, might result in a deep recession.

What’s more jaw-dropping is how quickly the Euro has declined in value. The currency, which is used by many European countries, has fallen over 11% so far, while the dollar’s strength has been nearly unrivaled.

As the war has put Europe’s political and economic stability to the test, many events have worked against the euro and supported the US dollar, which has reclaimed its position as a safe haven during financial chaos.

On top of that, the likelihood of a recession has been exacerbated by Covid-19 restrictions, the rise in gas prices, and Europe’s efforts to find a replacement for Russian gas. These factors have aided the dollar’s rise while offering no support to the Euro.

The president of the European Central Bank, Christine Lagarde, outlined a strategy to raise interest rates for the first time in 10 years. She suggested that the eight-year period of negative interest rates would come to an end by early fall.

While the European Central Bank prepares to raise interest rates, it must also monitor national bond markets. The impact of rising interest rates is a cause for concern, as well as the end of bond-buying programs of the central bank on Europe’s most indebted nations.

0
0
0
Share
Tweet
Share
Share
Marina Avramovic

Marina is a content writer and a film-maker who spends most of her time in front of the computer, writing articles and blog posts on various subjects, learning fictional languages or editing avant-garde movies. This compulsive penchant for learning new ways of dreaming and writing became her dream job. When she's not obsessing about work she tries to cook, read dystopian novels and go on adventures with her dog.

Previous Article
Finance News - 80% of Job Seekers in the US Are Afraid of Recession

80% of Job Seekers in the US Are Afraid of Recession

  • Marina Avramovic
  • July 20, 2022
Read More
Next Article
10 Important September Holidays to Mark on Your Calendar

10 Important September Holidays to Mark on Your Calendar

  • Marina Avramovic
  • July 21, 2022
Read More
You May Also Like
Finance News - Saudi Arabia Aramco’s Earnings Up by an Astonishing 90%
Read More

Saudi Arabia Aramco’s Earnings Up by an Astonishing 90%

  • August 17, 2022
Finance News - Makeup Sales Are Up by 20%, Despite the Ongoing Inflation
Read More

Makeup Sales Are Up by 20%, Despite the Ongoing Inflation

  • August 17, 2022
In July, Nonfarm Employment Increased by 528,000
Read More

In July, Nonfarm Employment Increased by 528,000

  • August 11, 2022
Credit Card Debt Sees the Biggest Increase in Over 20 Years
Read More

Credit Card Debt Sees the Biggest Increase in Over 20 Years

  • August 11, 2022
7 in 10 Workers Fail to Ask Big Questions During Interviews
Read More

7 in 10 Workers Fail to Ask Big Questions During Interviews

  • August 3, 2022
41% of Americans View Cryptocurrencies as a Bad Investment
Read More

41% of Americans View Cryptocurrencies as a Bad Investment

  • August 3, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

Recent Posts
  • How to Improve Credit Score to Buy a House 1
    6 Easy Steps How to Improve Your Credit Score to Buy a House
    • August 8, 2022
  • How Much Does Elon Musk Make a Day 2
    How Much Does Elon Musk Make a Day: 15 Major Facts & Stats
    • July 29, 2022
  • Can You Buy a House With a Credit Card 3
    Can You Buy a House With a Credit Card: Pros and Cons
    • July 22, 2022
  • Can You Buy a Money Order With a Credit Card 4
    Can You Buy a Money Order With a Credit Card in 2022
    • July 22, 2022
  • 10 Important September Holidays to Mark on Your Calendar 5
    10 Important September Holidays to Mark on Your Calendar
    • July 21, 2022
Follow Us
Facebook
Twitter
LinkedIn
CapitalCounselor
  • About
  • Our Team
  • Contact
  • Affiliate Disclosure
  • Privacy
  • Terms
©2022 CapitalCounselor.com – All Rights Reserved.

Input your search keywords and press Enter.