Europe plunges against dollar to two-decade low
Euro hits a new 20-year low
The shared currency continues its downward trend
The euro fell to a new two-decade low against the dollar on Wednesday, dropping beneath the 1.11 level for the first time since 2002. The decline comes amid concerns over the ongoing war in Ukraine, rising inflation, and a slowdown in economic growth in the eurozone.
The euro has lost more than 10% of its value against the dollar this year, making it one of the worst-performing currencies in the world. The European Central Bank (ECB) has been slow to raise interest rates to combat inflation, which has made the euro less attractive to investors.
The war in Ukraine has also weighed on the euro. The conflict has disrupted supply chains and led to higher energy prices, which have hurt the eurozone economy. The ECB has warned that the war could lead to a recession in the eurozone.
The euro's decline is a major concern for European policymakers. A weaker euro makes it more expensive for European businesses to import goods and services, which could lead to higher inflation.
The ECB is expected to raise interest rates in July in an effort to support the euro. However, analysts are skeptical that this will be enough to reverse the euro's decline.
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