It is the worst value against the US currency since November 2002. This decline has fueled fears that the “slump” in the European economy will lead to a recession.
Euskaraz irakurri: Euroaren balioak behera egin du eta dolarraren pare jarri da
The euro has depreciated to USD 1.03, the lowest in the past 20 yearsfollowing fears of a recession in the eurozone and the less aggressiveness of the European Central Bank (ECB).
The euro has been exchanged for $1.0285the worst value against the US currency since November 2002, representing a decline of 1.3% on the last day and a depreciation of more than 9% so far this year.
The Eurozone composite PMI, one of the key leading indicators of manufacturing and services activity, has fallen to a 16-month low as a result of the impact of inflation and the deterioration in economic expectations, causing the fear that the “deterioration” of the European economy will lead to a recession.
The risk of a contraction in the euro economy could therefore weigh on the ECB’s mind to normalize its monetary policy more aggressively, after announcing a 25 basis point rate hike in July, the first since 2011, and another in September, the intensity of which will depend on inflation forecasts.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
