Euro hits parity with the dollar for first time in 20 years
2 years, 6 months ago

Euro hits parity with the dollar for first time in 20 years

The Telegraph  

One euro is now worth a single dollar for the first time in two decades as fears grow that Putin’s gas cuts could push Europe into a recession. The decline has also been accentuated by recent strength for the dollar, which has been buoyed by the Federal Reserve’s aggressive interest rate rises and a rush to safe haven assets amid the threat of a recession. Alex Kuptsikevich, senior market analyst at FxPro, said the current situation was “very similar to the early 2000s” as Germany’s status as the continent’s economic powerhouse begins to falter. “They may harbour hopes of an accelerated normalisation of the region’s monetary policy.” The European Central Bank is widely expected to increase interest rates at its meeting later this month, in what would be the first hike since 2011.

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History of this topic

Euro drops vs strengthening dollar, French politics weigh
1 month, 1 week ago

Euro drops vs strengthening dollar, French politics weigh

Live Mint  

* Euro drops as concerns about French politics weigh * Markets still do not price in a government collapse in France * Dollar rises after first weekly fall since September * Yen off highs, ponder chance of BOJ rate hike By Stefano Rebaudo and Wayne Cole Dec 2 - The euro dropped on Monday versus a strengthening U.S. dollar on …

It’s not just Trump: Economic malaise and political chaos are battering Europe’s currency too
1 month, 2 weeks ago

It’s not just Trump: Economic malaise and political chaos are battering Europe’s currency too

Politico  

The European Central Bank, meanwhile, reminded markets last week that the combination of low growth and high budget deficits could revive fears of national bankruptcies across the eurozone. ‘Parity is the next milestone’ The single currency fell as low as $1.033 against the dollar on Friday, after dismal economic data sparked expectations that the European Central Bank will have to …

Boost for the pound as fears of trade war hit euro: Sterling tops €1.21 for the first time since March 2022
2 months ago

Boost for the pound as fears of trade war hit euro: Sterling tops €1.21 for the first time since March 2022

Daily Mail  

British holidaymakers will get more bang for their buck on the Continent this winter as the pound soars against the euro. In a boost for families planning skiing trips and other breaks in Europe, sterling topped €1.21 for the first time since March 2022. The euro also tumbled towards $1.06 against the dollar – its lowest level since April – …

Inflation fell to 2.2% in Europe, clearing the way for a European Central Bank rate cut in September
4 months, 2 weeks ago

Inflation fell to 2.2% in Europe, clearing the way for a European Central Bank rate cut in September

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the 20 European …

Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever
7 months, 1 week ago

Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever

Hindustan Times  

By Jamie McGeever Demise of dollar's FX reserve omnipotence greatly exaggerated: McGeever ORLANDO, Florida, - After two decades of the dollar's share of global foreign exchange reserves gradually eroding to less than 60%, economic, financial and geopolitical stars are aligning to halt that trend in the next few years and possibly even reverse it. But according to the OMFIF's 'Global …

Recovering euro keeps dollar ‘gorilla’ from scuppering ECB rate outlook
8 months ago

Recovering euro keeps dollar ‘gorilla’ from scuppering ECB rate outlook

The Hindu  

The euro has resisted falling to parity with the dollar for now, thanks to a rosier economic backdrop, to the relief of European Central Bank policymakers who could be struggling to detach themselves from the Federal Reserve’s monetary policy outlook. Just a month ago, the euro’s fall to five-month lows prompted talk among analysts about a return to parity against …

Dollar’s crown to slip as peers catch up in rates race, survey
1 year, 9 months ago

Dollar’s crown to slip as peers catch up in rates race, survey

Live Mint  

The U.S. dollar will weaken against most major currencies this year as the interest rate gap with its peers stops widening, putting the currency on the defensive after a multi-year run, according to a Reuters poll of foreign exchange strategists. Despite starting the year on a weak footing, the dollar bounced back sharply in February, gaining nearly 3% for the …

Eurozone inflation falls for first time in 17 months
2 years, 1 month ago

Eurozone inflation falls for first time in 17 months

New Indian Express  

Boosted by soaring energy and food bills triggered by Russia's war in Ukraine, the rate of price increases had hit a new historic record every month since November 21. Analysts had expected the inflation rate in the single currency area to fall but the drop was steeper than predicted by Bloomberg and FactSet, who foresaw 10.4 per cent. Among the …

Euro falls below parity with the dollar. What’s the impact?
2 years, 4 months ago

Euro falls below parity with the dollar. What’s the impact?

Associated Press  

The euro has fallen below parity with the dollar, diving to its lowest level in 20 years and ending a one-to-one exchange rate with the U.S. currency. But psychology is important, and the euro’s slide underlines the foreboding in the 19 European countries using the currency as they struggle with an energy crisis caused by Russia’s war in Ukraine. Many …

What a strong dollar means for the rest of the world
2 years, 5 months ago

What a strong dollar means for the rest of the world

Live Mint  

The U.S. dollar is stronger than it has been in decades and the effects of its rapid rise are reverberating across the globe. While currencies in emerging markets typically feel pressure when investors flock to a strong dollar, those of developed countries also have fallen. Outflows excluding China have been on par with previous macroeconomic shocks, according to IIF chief …

Explained | What will be the impact of euro-dollar parity?
2 years, 5 months ago

Explained | What will be the impact of euro-dollar parity?

The Hindu  

The story so far: The euro and the U.S. dollar reached parity on Tuesday, meaning one dollar could buy one euro in the foreign exchange market. Analysts believe that the divergence in the monetary policies of the U.S. Federal Reserve and the European Central Bank is the primary reason behind the euro’s significant depreciation against the U.S. dollar. The U.S. …

EXPLAINER: What’s the impact of euro parity with the dollar?
2 years, 6 months ago

EXPLAINER: What’s the impact of euro parity with the dollar?

Associated Press  

The euro has hit parity with the dollar, falling to its lowest level in 20 years and even skirting just below a one-to-one exchange rate with the U.S. currency at times this week. But psychology is important, and the euro’s slide underlines the foreboding in the 19 European countries using the currency as they struggle with an energy crisis caused …

Euro falls below dollar parity for first time since 2002
2 years, 6 months ago

Euro falls below dollar parity for first time since 2002

The Hindu  

The euro dropped below parity against the dollar on Wednesday for the first time in almost two decades, as a hawkish U.S. Federal Reserve and growing concern about rising recession risks in the euro area continued to batter the currency. But Russia's invasion of Ukraine, surging European gas prices and fears that Moscow could cut off supplies further has raised …

Euro hits US dollar parity for first time in 20 years
2 years, 6 months ago

Euro hits US dollar parity for first time in 20 years

Al Jazeera  

The euro has been particularly vulnerable given the effect of a continuing spike in natural gas prices and the war in Ukraine. The euro has hit parity with the United States dollar and stock markets fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. €1 = $1: The Euro hits …

The euro and the US dollar are at parity for first time in 20 years
2 years, 6 months ago

The euro and the US dollar are at parity for first time in 20 years

CNN  

New York CNN Business — For the first time in 20 years, the exchange rate between the euro and the US dollar has reached parity – meaning the two currencies are worth the same. “Given the nature of Germany’s exports which are commodity-price sensitive, it remains hard to imagine that the trade balance could improve significantly from here in the …

With US dollar nearly equal to euro, impact is being felt
2 years, 6 months ago

With US dollar nearly equal to euro, impact is being felt

Associated Press  

WASHINGTON — The U.S. dollar has been surging so much that it’s nearly equal in value to the euro for the first time in 20 years. Also contributing to the currency’s appeal, notes Rubeela Farooqi of High Frequency Economics, is that despite concern about a potential recession in the United States, “the U.S. economy is on firmer footing compared to …

Euro hits 20-year low against US dollar over recession fears
2 years, 6 months ago

Euro hits 20-year low against US dollar over recession fears

Al Jazeera  

Growing fears of a recession in the eurozone push the euro to its lowest level against the US dollar since 2002. The European Union’s single currency has sunk to its lowest level against the US dollar since 2002 as data pointed to a growing recession risk in the eurozone. Just before 09:00 GMT, the shared eurozone unit tumbled to $1.0306, …

Pound tumbles against dollar and euro as Ireland roundly rejects Boris Johnson's Brexit plan
5 years, 3 months ago

Pound tumbles against dollar and euro as Ireland roundly rejects Boris Johnson's Brexit plan

The Independent  

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK Sign up to our Brexit email for the latest insight Sign up to our Brexit email for the latest insight SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy …

The euro is falling against the dollar. Trump hits out on Twitter
5 years, 6 months ago

The euro is falling against the dollar. Trump hits out on Twitter

CNN  

London CNN Business — Europe signaled Tuesday that it could return to printing money to boost its flagging economy, a potential reversal of policy that drew an immediate rebuke from President Donald Trump. European Central Bank President Mario Draghi said in a speech that he was open to boosting monetary stimulus if economic conditions in Europe don’t improve. They also …

Euro currency remains a work in progress on 20th birthday
6 years ago

Euro currency remains a work in progress on 20th birthday

Associated Press  

FRANKFURT, Germany — The euro is about to celebrate its 20th birthday, but the countries that use it are still wrestling with how the shared currency should work and how to fix flaws exposed by the debt crisis that marred its second decade. The euro was launched on Jan. 1, 1999, when 11 countries fixed their exchange rates to it …

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