The euro lost to the dollar for the first time: trading began at parity, but then the EU currency gave up

Yekaterina Maksimova

At the beginning of trading, the euro traded against the dollar at around 1.0004. Then the dollar and euro exchange rates on the Moscow Exchange reached parity, but at the moment the euro even lost American currency. The euro fell by 0.52% to 58.918, the dollar was 58,928 rubles. According to Forex data, the euro and the dollar traded in a ratio of 1.001.

Promsvyazbank analysts in the telegram channel PSB Analytics noted that the ratio of the euro to the dollar, both in foreign markets and on the Moscow Exchange, for the first time in 20 years, came close to 1:1. And in perspective The dollar may become more expensive than the European currency.

“Such dynamics is associated with a tangible strengthening of the US currency against the backdrop of fears about the Fed's tight monetary policy due to a noticeable increase in inflation in the US. At the same time, the US regulator has already begun a cycle of raising key rates, when the ECB is still late”, - commented the bank's analysts.

Experts are waiting for the meeting of the ECB (European Central Bank), which is scheduled for July 21. Until this moment, the euro-dollar pair's movement vector will remain, and the US currency may become more expensive than the European one.

Novye Izvestia reported that the Eurozone currency began to lose ground on July 8. The pressure on the European currency, according to analysts, is exerted by a number of factors. The raw material dependence of the European Union is one of the reasons. Also, Frank Media analysts clarify, geopolitical and economic factors put pressure on the euro currency: the Ukrainian conflict, the migration crisis, sanctions that interrupted financial and trade relations with Russia, record inflation and, as mentioned above, a possible increase in ECB rates.

It is also worth noting that the euro on the world market fell against the dollar against the backdrop of a decline in the business activity index in the euro area. According to S&P Global, in June the growth of economic indicators of the eurozone slowed down. The composite index in June was 52 points (May - 54.8).