Euro coins in various denomiations along with predecessor currencies from Austria, Germany, and the Netherlands
The euro fell below parity against the U.S. dollar for the first time in almost two decades.
The decline comes with a war at the eurozone’s border, uncertainty over Russian energy, and talk of recession.
On Wednesday, one U.S. dollar was valued at €0.99.
The 19 states EU nations that use the euro as their national currency – Croatia is expected to become the 20th on January 1, 2023 – are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
The news makes European vacations and shopping particularly attractive to Americans, although it will likely reduce tourism in the opposite direction.
Parity between the two major currencies was last seen in December 2002, in the early days of the euro’s existence. It has become a psychological barrier for investors and traders.
The euro has slipped 11% so far against the dollar in 2022. Much of the decline is due to safe-haven demands. Last week, the euro stood at $1.027.
Meanwhile Brent crude oil fell more than 3% on Wednesday, to $99 per barrel.
(Photo: Accura Media Group)
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