July 8. () –
The price of the euro against the dollar continues to weaken this Friday and is increasingly closer to parity with the ‘greenback’, after the differential between the two currencies has come down to one cent, something that has not happened since December 2002 , in the face of growing fears that the eurozone will enter a recession dragged down by the consequences of the war in Ukraine.
In this Friday’s session, the cross between the euro and the US currency fell to a minimum of 1.0072 dollars, the worst change since December 12, 2002, although later the euro recovered some ground and changed to $1.0108, 0.53% below yesterday’s closing price.
So far this year, the euro has accumulated a depreciation of around 10% against the dollar as a result of the greater fear that the eurozone will end up entering a recession due to the impact of the war in Ukraine on prices and markets, as well as due to the advance with which the United States Federal Reserve (Fed) began to tighten its monetary policy compared to the European Central Bank (ECB).
In fact, while the ECB has announced that it will undertake its first rate hike since 2011 at the end of July, with a rise of 25 basis points, the Fed began the normalization of its monetary policy last March, with a rise of 25 basis points, which was followed by increases of 50 and 75 basis points, respectively, in the two following meetings.
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