The value of the euro, as compared to the U.S. dollar (USD), has hit a 20 year low.
What Happened: The value of the euro fell 1.3% to hit a value of $1.029 when compared to the USD, according to CNBC. Many economists are predicting that the European economy will be at risk of recession, especially if Russia cuts gas supplies.
In June, the European Central Bank reported an 8.6% increase in inflation. The bank then announced that, for the first time in 11 years, interest rates would increase across Europe. And the July Sentix Economic Interest Index indicated that morale among European investors hit its lowest point since May 2020.
Why It’s Important: Many economists and analysts have been predicting a U.S. recession for months. It now seems that the 19-country euro zone will likely experience the same economic hardships on the heels of COVID-19 lockdowns and increasing inflation.
More nations will likely enter a recession, causing families all over the world to struggle financially in a post-pandemic society.
Photo: Courtesy of Ibrahim Boran on unsplash
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.