For the first time in almost 20 years, one euro is sort of value the identical as one U.S. greenback. The euro, which is shared by 19 European nations, has just lately come underneath strain, like many different currencies towards the greenback, dropping greater than 10 % of its worth this 12 months.
The conflict in Ukraine, restricted energy supplies from Russia, excessive inflation and the rising threat of recession in the eurozone have dragged the euro right down to inside a whisker of parity, or a one-to-one trade fee with the greenback. This week, fears that a essential pure fuel pipeline from Russia to Germany, which went offline on Monday for 10 days of scheduled upkeep, might stay shut down for longer have hit the euro laborious.
An enormous fall for the euro on Monday was adopted by a smaller slide on Tuesday, at one level pulling it inside a fraction of a cent above parity with the greenback, with out tipping over the threshold.
The final time the euro was value the identical as the greenback was in December 2002, not lengthy after the foreign money was launched in 1999.
In different markets on Tuesday, shares in Europe and Asia had been principally down, and U.S. futures had been additionally buying and selling decrease. Government bond yields, a benchmark for borrowing prices, fell, as did oil costs, reflecting worries about financial development.