Euro and U.S. dollar have equal value for first time in 20 years

One U.S. dollar is now equivalent to one euro for the first time in nearly two decades.
On Tuesday, July 12, the euro and the dollar struck parity after nearly 20 years of the euro being superior.

1 EUR is equal to 1 USD as of Tuesday. With the change, European businesses and consumers will pay more for the goods and services they import while seeing an immediate decrease in the price of European exports on global markets. Since early February, when it was worth over $1.13, the value of the euro has fallen dramatically.

Euro and U.S. dollar have equal value for first time in 20 years

It comes as the European Union has seen inflation exacerbated by Russia’s invasion of Ukraine.

EU and U.S. sanctions have reduced the flow of Russian oil into Europe, and the currency block is much more dependent on Russian energy than the U.S.

The euro first hit price parity with the dollar in December 1999, just less than a year after its debut at $1.17. For a turbulent three years surrounding the 2001 dot-com crash, the dollar remained stronger than the euro. Worried investors treated the US currency as a safe-haven asset to hold during the burst of the tech bubble. But after 2003, the euro has remained stronger than the US dollar.

The parity of both currencies is a sign that investors are worried that a looming economic crisis will seriously affect Europe.

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