The euro falls to US $ 1.03 1:06
(CNN) --
The euro has reached parity against the dollar for the first time since 2002, continuing a sharp sell-off from Europe's common currency in recent months.
The euro is down about 12% against the dollar so far this year, on recession fears, high inflation and energy uncertainty triggered by Russia's invasion of Ukraine.
Europe hasn't been this cheap for Americans in decades.
These are the reasons
The dollar has also been gaining ground against most currencies this year as the US Federal Reserve raises interest rates.
The European Union, which received about 40% of its gas through Russian pipelines before the war, is trying to reduce its dependence on Russian oil and gas.
At the same time, Russia reduced gas supplies to some EU countries and recently reduced the flow in the Nord Stream gas pipeline to Germany by 60%.
Why is the dollar rising against the peso in Colombia?
That critical piece of infrastructure for importing gas into Europe went down Monday for scheduled maintenance due to the past 10 days.
The German authorities fear that it will not be re-ignited.
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The energy crisis is accompanied by an economic slowdown, which has raised questions about whether the European Central Bank can adequately tighten policy to reduce inflation.
The ECB announced that it will raise interest rates this month for the first time since 2011, as the eurozone's inflation rate stands at 8.6%.
CurrenciesDollarsEconomy eurozoneexchange rate
