Post a Comment Print Share on Facebook

Due to European weakness, the euro is worth as much as the dollar.

waiter </p> Madrid.

- 170 reads.

Due to European weakness, the euro is worth as much as the dollar.

waiter

Madrid. The dollar is almost worth the euro. After a steady decline in the value of the currency community currency in recent months, it is now the one that is denominated in parity with the two major currencies. This has been a favorable evolution for the United States. It was increased to 1,014 US dollars on Friday.

It will be the first exchange where both currencies are equal in value. The record-breaking price of the euro was $1.58 in 2008, right before the financial crisis. It was almost flat yesterday at the end, even though it had been down for nearly a year, during which time it lost 20% of its value.

The uncertainty around the expectations of the eurozone economy is what caused the collapse of the currency. This was made possible by the impact of the Russian invasion on Ukraine. Although the European Central Bank (ECB), will likely raise interest rates on 21st March, it would not do so by 0.25 point as it aspires to, and far less than half a percentage point as many analysts had expected. However, that decision has yet to be made. It has been delayed for several weeks and several members of its council contradict each other about the level of action regarding the increase in European interest rates.

In fact, the Federal Reserve (FED), has raised its interest rates to about 1% in the recent months. This is a more dynamic and agile monetary policy considering the high level of inflation in the country. The invasion.

Because the raw material for oil is paid in dollars, the fall of the euro will have a profound effect on how much capital Europe has to pay for it. The disbursement by European economies such as the Spanish is increasing as this currency becomes stronger.

Yesterday's Brent quality oil price, which is a reference for Old Continent, was quoted as 107 dollars with an increase of 1.5%. Monex Europe, a specialized firm, points out that the longer the euro trades at such low levels the more likely it will be that the ECB intervenes, causing speculation with a move of 50 basis points at its next meetings.

The impact of the dollar's fall against the euro on all European countries is more than just the price level. Europe must pay more for raw materials. The price of these raw materials is determined in dollars at a time when prices for oil and gas have soared. American companies could be affected by the rising cost of their products for foreign buyers.

Additionally, euro-based users will experience a decrease in value relative to the US currency. This is in addition to the loss in purchasing power already caused by high inflation. Spain: Euro and 10%.

Investors looking for higher yields are attracted by the US rate hike, which has raised US bond yields up to 3%.

Europe is also benefiting from lower export prices. Even though it is cheaper to export goods and products from importing countries like Spain, it can be more costly to get the invoice.

Tourism is another positive variable. Travelers from the United States will find it cheaper to purchase goods in Europe, but Europeans visiting North America will need to spend more due to currency exchange.

Avatar
Your Name
Post a Comment
Characters Left:
Your comment has been forwarded to the administrator for approval.×
Warning! Will constitute a criminal offense, illegal, threatening, offensive, insulting and swearing, derogatory, defamatory, vulgar, pornographic, indecent, personality rights, damaging or similar nature in the nature of all kinds of financial content, legal, criminal and administrative responsibility for the content of the sender member / members are belong.