The euro is under pressure due to the energy crisis and the possibility of a recession

This year has been difficult for the European currency, which has now, for the first time in more than 20 years, breached a key threshold: parity with the dollar. The sting operation in Ukraine, the energy crisis, and the rising possibility that Russia would halt gas shipments and send the eurozone into recession are all contributing causes to the loss of 12%.

The dollar is also in demand among investors, and various central banks are boosting their key rates at varying rates. Parity, according to some observers, may not be the goal but only the first step toward greater deterioration. This year’s decline of the euro is simply a portion of the worldwide narrative of dollar domination.

The dollar has become as a sanctuary for investors this year. The euro dropped today by 0.4 percent, reaching a low of $0.9998. The most recent statistics from the US Department of Labor showed that US inflation increased more quickly than anticipated, which was the cause of this decline. In turn, this raises the possibility of a Federal Reserve rate hike.