US Dollar Hits 20-Year High While Euro Falls To 20-Year Low

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Charlie Kabelac Contributor
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After weeks of approaching parity with the U.S. Dollar, the Euro fell to a 20-year, record-low Monday.

For the first time since Dec. 2002, the Euro and the U.S. Dollar were exchanged at a rate of one-to-one. The Euro has recovered a little since Monday. However, the two currencies were still close to parity on Tuesday afternoon.

The Euro dropped due to an onsetting recession, as well as the economic consequences of the Ukraine war. Workers began annual maintenance on the Nord Stream 1 gas pipeline maintenance on Monday, cutting off parts of Europe from gas for a minimum of ten days, Reuters reported. The continent’s energy crisis has reached a peak, and some economists worry that the pipeline’s shutdown could last longer due to Russia’s invasion. (RELATED: Democrats Urge Biden To Boost Oil, Gas Drilling Amid Energy Crisis)

Contrary, the USD rose in anticipation of the Federal Reserve Bank continuously increasing interest rates. They are projected to jump up to 3% by the end of the year, as compared to 1.58% now, CNBC reported. (RELATED: Federal Reserve Hikes Interest Rates For First Time In Three Years)

While the Euro dropped as low as $1.0005 against the U.S. dollar, the dollar index climbed to 108.19, a 20-year-high since Oct. 2002, according to Bloomberg. The dollar index is a measuring unit of the USD value relative to other foreign currencies.