The euro exchange rate has recently been declining and has reached parity with the dollar for the first time in 20 years. This means that 1 euro is currently equal to one dollar in international markets.
Reuters writes about it.
The reason for the fall of the euro was the economic crisis in Europe, which is connected with the increase in energy prices, as well as with Russiaʼs war with Ukraine. Meanwhile, the European Central Bank is in no hurry to raise the discount rate.
Instead, the U.S. central bank is pursuing a tighter policy, and this has allowed the dollar to strengthen significantly and reach its 20-year high against a number of other currencies.
In the morning, the euro fell to 1 0004, the lowest level in 20 years. The exchange rates of the British pound and the Japanese yen are also falling.