Euro Dips to Parity With US Dollar for First Time Since 2002

Euro Dips to Parity With US Dollar , for First Time Since 2002.

The euro fell to the level of the U.S. dollar on July 13.

The last time the two currencies were equal was in Dec.

2002, about three years after the euro had been adopted.

According to 'The New York Times,' the one-to-one exchange rate is a major point of interest for investors.

1.00 is probably the biggest psychological level around, Dutch Bank ING, Note to Clients, via 'The New York Times'.

It’s very much human psychology.

It’s just a round number, Jordan Rochester, Nomura Bank, via 'The New York Times'.

The euro is used as currency in 19 countries.

It's fallen by 11 percent in 2022.

While some analysts had predicted parity with the U.S. dollar for the euro, most did not expect it to happen as quickly as it has.

Analysts say the U.S. dollar appears to currently be a safe bet for investors.

The outlook remains very supportive for the dollar, Ebrahim Rahbari, Global Head of Foreign-Exchange Analysis Citi, via 'The New York Times'.

Concerning the euro, however, analysts struck a pessimistic tone.

It is hard to find much positive to say.

The economic news is very challenging, HSBC Analysts, Recent Note to Clients, via 'The New York Times'.

The fall of the euro intensifies recession fears for the eurozone of the EU.

It’ll be another testing time for the eurozone, Jordan Rochester, Nomura Bank, via 'The New York Times'.

Similarly to actions of the U.S. Federal Reserve, the European Central Bank is considering its own interest rate hikes