For some time, the US dollar became slightly stronger than the single European currency. The euro dipped below parity against the greenback for the first time since the euro's circulation in 2002. However, this appreciation in the value of the US dollar was short-lived.
In mid-July, the European currency tanked to its lowest level since December 2002. In midday trade on July 13, €1 was briefly worth $0.9999. As of 4:04 pm GMT+3, the euro traded at $1.0024. On July 12, the exchange rate between the euro and the US dollar struck parity for the first time in nearly 20 years.
Notably, the United States reported that inflation in June accelerated at the fastest annual pace since November 1981. The consumer price index stood at 9.1%, up from an 8.6% jump in May, while market analysts projected an 8.8% increase.
The euro is losing ground against the greenback as economic and geopolitical risks as well as record inflation are weighing heavily on the currency. In addition, its weakness can be attributed to uncertainty about gas supplies to the EU and a complex surge in prices for European goods. The euro’s dip below parity with the dollar in July was predicted by Deutsche Bank analysts.
