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The euro falls to its lowest value in almost 20 years and is close to parity with the dollar

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Analysts affirmed that the risk of recession in Europe is one of the reasons for the depreciation of the currency.

The euro reached its lowest level against the dollar this Tuesday, July 5 since the end of 2002, to the point of being close to parity.

The European currency lost 1.3% of its value and traded at 1.0281 dollars, the lowest value since December 2002. In this way, both currencies are close to equality for the first time since the euro was created in 1999.

Likewise, the EU currency also fell against the Swiss franc, falling to 0.9925 francs, which represents the lowest level since 2015.

Regarding the reasons for this situation, Fiona Cincotta, from City Index, explained that the fall of the euro is linked to “growing fears of a recession”, which adds to the inflationary situation that the continent is going through.

On the contrary, the dollar gains strength as a consequence of the decision of the US Federal Reserve to maintain “its rate hikes to curb inflation”.

Two weeks ago, the agency applied the largest increase in rates since 1994, with an increase of 0.75 points.

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