For the primary time in practically 20 years, one euro is sort of value the identical as one U.S. greenback. The euro, which is shared by 19 European international locations, has not too long ago come below strain, like many different currencies in opposition to the greenback, dropping greater than 10 p.c of its worth this 12 months.
The warfare in Ukraine, restricted vitality provides from Russia, excessive inflation and the rising threat of recession within the eurozone have dragged the euro right down to inside a whisker of parity, or a one-to-one alternate fee with the greenback. This week, fears {that a} essential pure fuel pipeline from Russia to Germany, which went offline on Monday for 10 days of scheduled upkeep, however may stay shut down for longer, have hit the euro exhausting.
An enormous fall for the euro on Monday was adopted by a smaller slide on Tuesday, at one level pulling it inside a fraction of a cent above parity with the greenback, with out tipping over the edge.
The final time the euro was value the identical because the greenback was in December 2002, not lengthy after the foreign money was launched in 1999.
In different markets on Tuesday, Europe’s Stoxx 600 is up 0.5 p.c, whereas Tokyo’s Nikkei 225 and Hong Kong’s Hold Seng closed with losses of over 1 p.c every. All three main U.S. indexes had been down. The U.S. 10-year treasury, a benchmark for borrowing prices, fell, as did oil costs, reflecting worries about financial development.
