For the first time in twenty years, the value of the euro to dollar is the same. The euro lost value this year against the dollar by around 14% and by 17.8% compared with June of last year.
Facing the challenges posed by Russia’s invasion of Ukraine, the euro is losing strength. Energy costs and concerns about the Russian Federation’s gas supply are two of the main factors affecting the pressure.
The monetary policies of Washington and Brussels are different; the Fed raises the base rates, while the ECB keeps them down, which has an impact on the dynamics.