Euro falls below dollar for first time in 20 years
13 July 2022, 09:54 pm | Updated: 22 November 2024, 05:08 am
The euro has fallen below the dollar for the first time in nearly 20 years as the war in Ukraine pushes the single currency down.
A single euro bought $0.998 on the foreign exchange market at 12:45 GMT, down by 0.4% in the day's trading, reports BBC.
Fears that Russia may restrict Europe's supplies of energy have increased the chances of recession in the euro area.
The European Central Bank has lagged other central banks in raising rates, further weakening the euro.
Currencies tend to rise when the relevant central bank increases interest rates, as international investors eye a larger return for holding assets priced in that currency.
The dollar has also been strong in recent months, buoyed by the US central bank raising interest rates, and investors seeking the safe haven of dollar assets in times of global turmoil.
