Euro And US Dollar Reach Parity For The First Time In 20 Years

The exchange rate between the Euro and United States Dollar has reached parity – meaning the two major currencies now have the same worth.

The development would make it the first in 20 years for such an occurrence.

On Tuesday, July 12, the euro hit $1, which represented a decline of about 12 percent since the start of this year.

Recent economic developments on the globe have sparked fears of a recession associated with supply chain disruptions, high inflationary pressures, energy supply uncertainty and tensions between Russia and Ukraine.

According to CNN Business, the European Union, which received roughly 40 percent of its gas through Russian pipelines before the war, is now attempting to reduce its dependence on Russian oil and gas.

The portal said at the same time, Russia has throttled back gas supplies to some EU countries and recently cut the flow in the Nord Stream pipeline to Germany by 60 percent.

Meanwhile, the European Central Bank announced that it will hike interest rates this month [July] for the first time since 2011 in a move to stem inflation, as the current eurozone inflation rate is pegged at 8.6 percent.

 

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