While the risk of recession along with the rise in interest rates in the USA and the rise in energy costs weakened the Euro, 20 years later, the balances were equalized. In 2021, 1 euro was equal to $1,137.
Dollar and Euro become the same after 20 years
The other day, Euro, which lost 12 percent this year, reached the same parity with the Dollar. This new balance in the pair also came after Germany’s trade confidence fell amid concerns over energy supply. While the European economy weakened, the US Federal Reserve (FED) increased interest rates aggressively. The US strengthened the dollar with higher interest rates. With the recent rate hikes in the US, the risk of recession and the energy costs escalated by the war in Ukraine, further economic pressure has been placed on the Eurozone.