This Wednesday, July 13, the euro price fell below parity with the dollar for the first time in two decades.
The price of the European currency it was lower than the dollar for a few moments, falling back to $0.9998 around 1245 GMT.
This drop is the lowest level seen since the currency of Europa It began circulation in 1999, but then returned slightly above $1 to its lowest since 2002.
For the time being, until the last recorded closure, the agency Bloomberg estimates that so far this year the euro it has weakened by regarding 12%.
Why is the euro down?
According to Bloomberg, a series of ever-increasing interest rate hikes in the United States Federal Reserve has supercharged the dollar, while Russia’s invasion of Ukraine worsened growth prospects in the euro zone and raised the cost of its energy imports.
Meanwhile, it has been seen that until now the European Central Bank it has resisted aggressive tightening of its monetary policy, but is expected to raise borrowing costs by a quarter of a point later this month.
“That is likely to maintain a widening interest rate differential that will keep pressure on the currency common,” says Bloomberg.
The energy crisis in Europe plus the slow monetary tightening by the European Central Bank are fueling fears that the eurozone will fall into recession.
It is worth mentioning that the collapse of the euro of this morning was promoted following knowing an inflationary acceleration in the United States, which would imply that the US Federal Reserve will apply a new increase in its interest rates at the end of this month.
How much does it cost in Peru?
The Central Reserve Bank (BCR) indicates that until yesterday the price of the euro in Peru stood at S/ 3,989 at the interbank level.
According to the monetary entity, during the last 12 months the euro price has fallen by 15.10% in the Peruvian market.
For its part, the platform cualestaeldolar.pe indicates that the money changers buy the euro at S/ 4.07 and they sell it for approximately S/ 4.20.
