- The US dollar has overtaken the Euro for the second time in 20 years.
- The Euro exchange rate recorded its low value in September 2002.
For the second time in 20 years, the Euro currency exchange rate has surged in value that is almost equivalent to the US dollar. On July 12th, for the first time, the US dollar significantly climbed to a value of 1.0098, which is equal to the Euro. This pattern raises the price of American goods to international customers.
Since reaching an all-time high of €1.5990 in July 2008, the euro has surged by more than 37%. A 20-year low of €0.9649 was registered in September 2002, and the average exchange rate is €1.2395.
Reason Behind The Price Surge
Russia’s invasion of Ukraine, imposed pressure on the surrounding Eurozone, as a result of this, countries in the EU have been trying to find fresh sources outside of Russia due to the rising cost of energy.
Furthermore, The European Central Bank (ECB) announced on July 21 that it will increase interest rates for the first time in 11 years. Following that, in 25 years, the Eurozone’s annual inflation rate rose to 8.9% in July. The CPI has increased consistently, from 7.4% in April to 8.1% in May to 8.6% in June.
The countries with the lowest annual rates were Finland (8.0%), France, and Malta (6.8%). And the highest annual rates were registered in Estonia (23,2%), Latvia (21,3%), and Lithuania (20,9%).
Energy made the largest impact on the annual inflation rate in the euro area. This was followed by food, alcohol, and tobacco services and non-energy industrial goods.
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