Markets, the euro fell against the dollar, parity is not far away. In one year the European currency lost 13%

Signs of a slowdown in the European economy, which would push the European Central Bank toward a less aggressive policy on interest rates, hit the euro in the markets, which ended at the lowest levels in the last 20 years against the dollar. The single currency is declining So from 1.1% to $1.03, Back to levels December 2022. there Equivalence is not out of reach. According to operators, the central bank could raise interest rates in a range lower than last week’s expectations. The European Central Bank will meet with its Governing Council next time July 21, the interest rate adjustment has already been announced, the extent is still uncertain. It is possible that we can limit ourselves to +0.25% and then tighten the pressure in September, It is also based on the development of inflation and economic growth data. Higher interest rates have the effect of reducing the amount of money in circulation, which can help slow inflation. Conversely, less expanding monetary conditions hamper economic growth and stock markets.

Over the past year, the euro has lost 13% of its value against the dollar. The two highest currencies in the world Today they are traded almost equally. The reason for strengthening the dollar is largely due to decisions Federal Reserve, The US central bank, which began raising interest rates Already last March. A weaker currency has the advantage of favoring exports from the region of the currency you use to countries that use the currency, which promotes the other way around. This is because the cost of imported goods is lower Relatively. So the depreciation of the euro should push European exports towards it United State.

See also  7-Eleven operator is acquiring Marathon Petroleum's Speedway gas stations for $21 billion

Let’s keep working together
The battles we believe in!

Supporting means allowing us to continue publishing an online newspaper full of news and insights.

But also being an active part of the community with ideas, testimonials and sharing. Support us now!

Thank you
Peter Gomez

Support us now

Available payments

Previous article

Istat, the income of families at risk, consumes less and saves more. Improving the deficit of public administrations

next one

Leave a Reply

Your email address will not be published.