On July 13, the euro on financial markets fell by 0.4% to a 20-year low of 0.9998 per $1. As of 16:40 Kyiv time, it returned to the mark of about $1,003.
Bloomberg writes about it.
The reasons are many, from the war in Ukraine to the energy crisis, rising demand for the dollar, and the risk that Russia will completely stop exporting gas and push the eurozone into recession. Some analysts say that parity with the dollar may not be the end point, but only a stepping stone to further weakness of the euro.
The depreciation of the euro was incredibly fast, considering that the currency was worth about $1.15 in February. Less than two years ago, European Central Bank policymakers were concerned about the euroʼs excessive strength causing inflation to fall. Now they face another problem — a sharp fall in the euro and rising consumer prices.
"The ECB does not target a particular exchange rate," a representative of the European Central Bank said on July 13. "However, we are always attentive to the impact of the exchange rate on inflation, in line with our mandate for price stability [set out in the Treaty on the Functioning of the European Union]," he said.