Usd to euro

The euro exchange rate has been falling for months and is now at the same level as the US dollar. A year ago, one euro cost $1.20, and by the beginning of 2022, it had already plunged to $1.13. Since then, the depreciation continued and culminated in a brief Experts identify two main reasons why the euro has lost value, one being “The inflation in the EA averaged 8.6 percent in June with 14 small euro area economies experiencing above-average inflation up to as high as 22 percent in Estonia. Only five euro area economies are below this EA average,” he said. “This rising trend is on the back of higher energy prices due to the Russia-Ukraine conflict,” he added. Indeed, the US economy has been far less affected by the Ukraine war than Europe, which has thus far remained “somewhat immune to the volatility in oil and gas markets, given their oil reserve and use of alternative sources of energy, explaining why US dollar is appreciating relative to euro”, Mallick said. ‘Safe haven status’ Moreover, in contrast to Europe, US interest rates have been rising for several months, which makes investments in the US dollar area more attractive, according to Lucio Sarno, professor of finance at the University of Cambridge. “The increasing interest rates in the US attract further investment in dollar assets, and this is in addition to the strong demand for dollar driven by its safe haven status at times of war,” he told Al Jazeera. At the end of January, the US Federal Reserve Bank’s (FED...