The exchange rate of the euro to the US dollar has fallen to the low position in nearly 20 years

Xinhua News Agency, Frankfurt, July 6 (Reporter Shan Weiyi) Affected by the risk of "stagnation" in the euro zone and strong US dollars, the 5th euro exchange rate on the US dollar fell to 1 to 1.0265, the lowest level in the past 20 years.

European Central Bank data shows that the exchange rate of the euro to the US dollar has fallen by more than 9%since this year. According to data on the 5th Bloomberg pricing model, the possibility of the euro and the US dollar achieved a parity exchange from 46%a day before the end of the year to 60%.

The weakening of the euro exchange rate is mainly due to the slowdown in European economic growth in the near future, and the market has continuously reduced the expectations of the European Central Bank's interest rate hike expectations. In addition, the market's expected increase in the US Federal Reserve Commission's expected increase in interest rate hikes at the end of July has led to a stronger exchange rate in the US dollar.

Market participants believe that the European Central Bank expects to curb inflation through interest rate hikes, and is worried that interest rate hikes will cause some southern European countries to increase debt pressure. Therefore, the movement is slow. The tightening pace of the European Central Bank lags behind the Fed, which puts the euro exchange rate.

Derrick Hal Pini, chief analyst of Mitsubishi Daily Financial Group, said that as the energy crisis intensifies and the risk of economic growth has increased significantly, the euro will be difficult to appreciate in the future.

[Editor in charge: Wu Yongling]

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