It hadn’t happened for twenty years, almost since the birth of the single currency: a euro is worth as much as a dollar. The single European currency has fallen to par with the greenback. The peak was in 2008 with one euro worth 1.6 dollars. At the beginning of the year it was worth $ 1.15.
It contributed to causing the euro-dollar parity the increase in the prices of raw materials and the energy crisis, more generally the European economic situation. The dollar became a safe haven with the US economy stronger than the European one. What are the consequences that we can feel every day?
Generally when a currency weakens it becomes more expensive to import products from abroad. The change becomes unfavorable whether it is for a finished product such as a smartphone or for raw materials. For example, oil is paid for in dollars: with the strong euro the final product came to cost less.
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On the other hand, exports are favored. European goods and products cost less abroad and become more attractive. This can certainly benefit theagri-food and to the products of the sector luxury. However, inflation weighs on everyone because it could be more expensive to produce and the advantage of the weak euro could be lost.
Certainly the sector could have an advantage tourist. Americans could go back to spending in Europe and Italy.
– Air conditioners, from May 1st the rules for the summer come into force
– Energy saving, driving against expensive bills without suffering from the heat
Source: Vanity Fair
