The euro briefly falls beneath a greenback, a primary for twenty years

The euro briefly falls beneath a greenback, a primary for twenty years

Weighed down by the gloomy outlook for the European financial system, with the potential of a stoppage of Russian gasoline provides, the euro plunged on Wednesday July 13 beneath the symbolic threshold of 1 greenback, which is a primary since December 2002, almost a yr after its launch.

The only European forex has depreciated by 12% for the reason that starting of the yr and its decline has elevated in current weeks, settling at 0.9998 {dollars}, Wednesday at 2:45 p.m. Paris time.

Learn additionally: Article reserved for our subscribers How the autumn of the euro in opposition to the greenback is fueling inflation

Rampant inflation

It’s primarily affected by galloping inflation in the US, which is resulting in an earlier rise in American and British rates of interest, sooner than that of European Central Financial institution (ECB) charges, and from the publicity of nations of the euro zone to the fallout from the battle in Ukraine, which raises fears of a slowdown in development, or perhaps a recession within the occasion of a whole halt in Russian gasoline deliveries.

The greenback, for its half, advantages from its standing as a protected haven in a context dominated by the deterioration of the financial outlook: the American forex is evolving at its highest degree for twenty years in opposition to the opposite main currencies and for 24 years in opposition to the yen.

Le Monde with AFP and Reuters

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