The value of the euro again falls slightly below the dollar

The euro fell slightly below the dollar today, hitting a two-decade low. The Euro has been depreciating against the US currency for the past few days. This development is associated with fears of a recession in Europe. Higher interest rates in the United States are helping the dollar advance against the euro.

By late afternoon, one euro was worth just 0.9938 dollars. As a result, the value of the euro fell below its level a month ago. Back then, the value of the euro and the dollar was already the same, which was called parity. This is the first time since 2002. A few days later the euro was also briefly below the dollar, but the European single currency rose again.

More expensive

A weak euro makes it more expensive for people paying in the single currency to buy dollars, for example to go on holiday to the US. For Americans, buying euros to vacation in Europe is actually getting cheaper.

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Importing US goods is also becoming more expensive for European companies, while exporting European companies may benefit from a cheaper euro. Because oil and other commodities are settled in dollars, crude oil imports to Europe are more expensive. It may increase inflation further.