The world economy is witnessing a historic moment today. For the first time in 20 years, the value of the euro and the dollar were equalized. So why does this occur? Why did the euro suddenly lose value?
The euro was introduced to the world financial markets on January 1, 1999 and entered circulation on January 1, 2002. witnessed a historical moment. While inflation increased all over the world with the Ukraine war, the effects of this increase were felt strongly in Europe. Today, the euro For the first time in more than 20 years became less valuable against the dollar.
The value of the euro and dollar, which has been equalized in the past days, is today for the first time since 2002. synchronized to each other. According to Investing data, the value of one euro as of 17.10 hours, the lowest level of 1.0054 he saw. On the other hand, Google started to show the value of one euro as $ 0.99. The table of those historical moments was as follows:
Euro/dollar equalized, dollar surpassed euro according to Google:
So why is the euro falling?
Europe, which is in need of Russian gas, entered a major energy crisis with the effect of the war. The energy crisis, which affected the European Union markets, also caused an increase in inflation. On the other hand, at the other end of the ocean, inflation is on the rise in the United States, while the US Federal Reserve’s with the critical policy rate decision Wide-ranging measures have been taken. The US increased the policy rate by 75 basis points, the highest in the last 28 years. On the other hand, the European Central Bank preferred to stay away from raising interest rates. Still, he said this month that a rate hike is among his options.
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