First time in 20 years, Euro and Dollar at parity
The exchange rate between the Euro and the US Dollar has reached parity for the first time in 20 years.
Despite the drop in the euro since the beginning of the year, it hit $1 on Tuesday. As a result of Russia's invasion of Ukraine and high inflation, there is fear that the continent might be entering a recession.
In an attempt to reduce its dependency on Russian oil and gas, the European Union, which received roughly 40% of its gas from Russian pipelines before the war, is seeking to reduce its dependence on these resources. Russia has also reduced gas supplies to some EU countries and recently cut the Nord Stream pipeline to Germany by 60%.
Why did the euro drop?
There are several key factors that have led to the Euro’s recent decline. First, the E.U.’s economy is slowing, a...