Euro Hits Parity With Dollar, Again

By Paul Riegler on 22 August 2022
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The euro fell enough to achieve parity against the U.S. dollar again on Monday.

In early morning trading on Monday, the euro fell by 0.4% and one U.S. dollar was at one point valued at €0.99, dropping below parity, before settling at parity.

The exchange rate Monday was the first time the two currencies were at parity since earlier in the summer on July 12.

Prior to July, the last time the euro was at this level was in December 2002.

The euro’s decline has come with a war at the eurozone’s border, uncertainty over Russian energy, and talk of recession.

The 19 states that use the euro as their national currency – Croatia is expected to become the 20th on January 1, 2023 – are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

The news makes European vacations and shopping particularly attractive to Americans, although it will likely reduce tourism in the opposite direction.

Parity between the two major currencies was last seen in December 2002, in the early days of the euro’s existence.  It has become a psychological barrier for investors and traders.

The euro has slipped 11% so far against the dollar in 2022. Much of the decline is due to safe-haven demands.  Last week, the euro stood at $1.02.

(Photo: Accura Media Group)

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