For the first time in 20 years: the euro rate has fallen to one dollar
Created: 07/12/2022, 12:11 p.m
By: Nail Akkoyun
Breaking news from IPPEN MEDIA.
(symbol image) © IPPEN MEDIA
The euro has been falling for months.
Recently, the downward trend has accelerated.
For the first time since 2002, one euro costs just one dollar.
Frankfurt – For the first time in about two decades, the euro is worth exactly one dollar again.
On Tuesday afternoon, the common currency fell to exactly one dollar, falling to par for the first time since 2002.
This means a one-to-one exchange ratio.
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.
The weakness of the euro is inconvenient in the current environment with comparatively high inflation rates.
Because the lower the exchange rate of the common currency, the stronger other currencies such as the dollar become in relation to it.
As a result, goods imported into Germany become more expensive.
This fuels inflation.
When the euro exchange rate falls, consumers have to dig even deeper into their pockets to cover their living expenses.
Above all, energy and raw material prices threaten to rise further.
(nak/dpa)