Matty Burnhart, Knitted News05.07.22 13:40 Friday in Tammuz Tishpev
(Photo: Shatterstock)
The euro, the currency of the European Union, has fallen 1% in value against the dollar, and is now worth $ 1.0283. This is the lowest figure in 20 years.
The drop comes amid fears of a recession in the eurozone, amid rising fuel prices as the war in Ukraine does not appear to be coming to an end.
Inflation in the eurozone reached a peak of 8.6% in June, prompting the European Central Bank to announce to markets that it intends to raise interest rates in July, for the first time in 11 years.
Despite this, fears of a recession may limit the Bank’s ability to tighten monetary policy. According to the data, investor confidence in the 19 countries in the bloc has fallen to its lowest level since May 2020, indicating an “inevitable” recession.
As mentioned, inflation is at its peak, oil prices have climbed, and natural gas prices continue to climb, against the background of a cessation of supplies from Russia. Natural gas prices have climbed by no less than 7.8% in the last month.
All these events have led to severe damage to the euro currency. Since the beginning of the year, the euro has lost 9% of its value against the dollar. The dollar continued to be strong as the Federal Reserve embarked on an aggressive policy of raising interest rates.
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