The euro, which was introduced to the world financial markets on January 1, 1999 and entered circulation on January 1, 2002, witnessed a historic moment today. While inflation increased all over the world with the Ukraine war, the effects of this increase were felt strongly in Europe. Today, the euro has become less valuable against the dollar for the first time in more than 20 years.
The value of the euro and the dollar, which had been equalized in the past days, has been equalized for the first time since 2002 today. According to Investing data, as of 17.10, the value of one euro hit the lowest level of 1.0054. On the other hand, Google began to show the value of one euro as $ 0.99. The chart of those historical moments was as follows:
Euro/dollar equalized, dollar surpassed euro according to Google:
So why is the euro falling?
Europe, which is in need of Russian gas, entered a major energy crisis with the effect of the war. The energy crisis, which affected the European Union markets, also caused an increase in inflation. On the other hand, while inflation started to increase in the United States at the other end of the ocean, extensive measures began to be taken with the US Federal Reserve’s critical policy rate decision. The US increased the policy rate by 75 basis points, the highest in the last 28 years. On the other hand, the European Central Bank preferred to stay away from raising interest rates. Still, he said this month that a rate hike is among his options.
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