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Eurotower in Frankfurt: The European currency is currently cheap on the foreign exchange market.
Photo: IMAGO/Schöning
The euro has not been so cheap for a long time: for the first time in almost 20 years, the exchange rate of the common currency has fallen to a dollar exchange rate of one to one.
The common currency reached parity with the US dollar on Tuesday afternoon.
The euro had already reached its lowest levels since 2002 in the past few trading days.
The euro has been under pressure on the financial markets for some time.
The reasons are the effects of the Ukraine war, which hit Europe particularly hard, and the European Central Bank's comparatively cautious fight against inflation.
On the foreign exchange market, the euro also came under pressure from the strong dollar.
The American currency was able to gain against almost all other major currencies in the morning.
Investors are already eyeing US inflation data due on Wednesday.
A further increase in inflation and an inflation rate of 8.8 percent are expected for June.
Because of inflation, the US Federal Reserve is likely to continue its tightening policy and raise interest rates significantly, which will give the dollar a boost.
mic/dpa
