This year the dollar and the euro will become worth exactly the same.
The euro fell to its lowest level against the dollar in more than two years on Thursday. This happened against the background of concerns about the European economy and the difference in monetary policy between Europe and the United States.
Many currency experts predict that the euro will fall to parity with the dollar or even below this year. This means that the currencies then have exactly the same value.
The last time this important psychological line was crossed was in 2022. This happened after Russia’s invasion of Ukraine, which sparked an energy crisis in Europe and fueled recession fears.
The euro fell 0.4 percent to $ 1.0314 on Thursday, the lowest level since November 2022. Since the end of September, when the euro was still above $ 1.12, the value has fallen about 8 percent.
The euro is under pressure from concerns that export-oriented European countries will be hurt by US trade tariffs and from expectations that the European Central Bank (ECB) will cut interest rates more aggressively than the US Federal Reserve. Political uncertainty in the largest economies of the eurozone also plays a role in the decline. (AP)
