With information from AFP
The parity rate between the dollar and the euro once again surpassed an all-time record. This Monday, the old continent’s currency fell to $0.9951, its lowest level since 2002, the year it was issued, slumped by an energy crisis that is threatening Europe with a recession.
In this way, the North American currency improved its performance mainly due to the US Federal Reserve’s rate hikes, so this Monday at 15:30 GMT (10:30 Peruvian time) the euro lost 0.96% and even reached 0.9941 US -dollar was traded.
The US economy has been less affected than Europe by the war in Ukraine, giving that country’s central bank more leeway to tighten monetary policy, leading to an appreciation of the dollar.
For Europe, this means more expensive imports, especially commodities like oil, which are traded in dollars. This in turn is exacerbating inflation, which is straining the pockets of consumers and businesses in the old continent.
“The sword of Damocles hanging over Europe will stay there,” said Kit Juckes, an analyst at French bank Société Générale.
For his part, Fed President Jerome Powell will give fresh guidance on his economic policy at Friday’s meeting of central bankers at the Jackson Hole symposium in the United States.
“The Jackson Hole meeting will give the Fed a new opportunity to convince the market,” said Ulrich Leuchtmann, an analyst at Commerzbank.