The euro's decline highlights the gloom among the 19 European nations that use it as they battle an energy crisis brought on by Russia's conflict in Ukraine.
Here are the causes of the euro's decline and potential effects:
What does parity between the euro and dollar mean?
It indicates that the value of the currencies of Europe and America is equal. The value of the euro has decreased this week to just around $1, albeit it is continuously fluctuating.
Energy prices pushed euro-area inflation to a record 8.9 percent in July, raising the cost of everything from groceries to utility bills. They have also raised concerns that governments will be forced to ration natural gas to industries such as steel, glassmaking, and agriculture if Russia reduces or completely shuts off gas supplies.The sense of impending doom grew as Russia reduced flows through the Nord Stream 1 pipeline to Germany to 20% of capacity and announced a three-day shutdown next week for "routine maintenance" at a compressor station.
Tags:inflation,gas,euro,dollar,Russia,Ukraine,
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