One dollar equals one euro for the first time since 2002

The exchange rates of the dollar and the euro equalized on the international market for the first time in 20 years, Investing.com says. The last time when parity in the value of the two currencies was recorded was in December 2002.

On July 12, the euro fell to $1 at 12:46 Moscow time. The exchange rates of the dollar and the euro against the Russian ruble were equal on the Moscow Exchange too — they both cost approximately 59.3 rubles each.

The convergence of the dollar and euro rates indicates problems in the economic policy of Europe, Konstantin Ordov, Director of the Higher School of Finance of the Plekhanov Russian University of Economics believes.

"Europe is not as flexible in relation to the US Federal Reserve, which has already taken measures to combat inflation. Europe is still slow at this point. We can now see that the European Central Bank is far behind economic and inflationary trends — it is not ready for prompt action," the expert said.

USA makes dollar stronger at euro's expense

Economist Maxim Chirkov said in an interview with Pravda.Ru that such changes in the global financial system could be called unusual.

"During all previous crises, reserve currencies would strengthen. Now they are falling, and so is the purchasing power," the specialist said.

According to him, the value of the dollar has been increasing against the euro due to the actions of US officials as they try to fight inflation.

"Washington is trying to strengthen the dollar against other currencies, including at the expense of the euro. The wave of inflation that affects the whole world leaves the United States no other choice," Chirkov explained.

The dollar will continue to strengthen against the euro, while both currencies will be declining in value, the expert said.

"The dollar will deteriorate significantly in the event of ongoing sanctions confrontation and higher inflation," the economist concluded.

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Author`s name Editorial Team
Editor Dmitry Sudakov
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