On Tuesday, 12 July, the value of Euro dropped to US dollar value for the first time since 2002.
Euro exchange course has been on decline for some time due to rising concerns about the possible recession in Eurozone.
The US Federal Reserve policy rapidly increased interest rates, which caused a rise for dollar’s value and created pressure on euro because European Central Bank focuses more on a tighter monetary policy at a slower pace.
Concerns about Eurozone’s economy also comes from the possible energy crisis, which could be caused by problems with replacement of Russian energy resources.
European Commission’s announcement regarding this week’s plans to downgrade Eurozone’s growth outlook for 2022 and upgrade inflation outlook does not help either.
Concerns about parity between euro and US dollar are also on a rise.
Even though after euro exchange rate had dropped to 1.0003 USD/EUR it did increase slightly, analyses say reaching parity is unavoidable and
euro may become less valuable than US dollar.