euro and dollar continue to rise

SHAFAQNA TURKEY – The euro continues to rise against the dollar after the recent turmoil in the global banking sector changed market expectations for an interest rate hike cycle.

The euro/dollar parity reached its highest level since March 2022, reaching $1.1076 during the day.

The said parity traded at 1.1008 at 17.35 TSI. The euro/dollar parity fell to its lowest level in 20 years, below $0.96 and 1.0000 in September 2022.

Safe investments are in low demand, strengthening the euro

The ability of the US Federal Reserve (Fed) to pursue a less restrictive monetary policy and its impact on the dollar is effective in raising the parity.

In addition, with more positive market sentiment after the global banking turmoil subsided, safe investments such as dollars are in relatively less demand, strengthening the euro.

Price in euro

When the euro was introduced in 1999, 1 euro was worth 1.17 dollars. After that date, the euro quickly depreciated against the dollar. In October 2000, the euro fell to $0.82.

The euro appreciated against the dollar from 2002 to 2008. In 2008, 1 euro broke a record, rising to 1.60 dollars.

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