Business Maverick: Euro Drops to Dollar Parity for First Time in Two Decades

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The euro has suffered a swift and brutal slump this year, and now it’s crossed a major threshold for the first time in more than two decades: parity with the dollar.

The 12% decline is the result of multiple pressures, from the war in Ukraine to an energy crisis and the growing risk that Russiaand pushes the euro area into recession. Add in central banks moving at vastly different speeds and an in-demand dollar, and some analysts say parity may not be the end point, but merely a stepping stone to further weakness.options

The common currency slipped as much as 0.4% Wednesday to touch a low of $0.9998. The final leg lower came after data showed US inflationby more than forecast, boosting bets on Federal Reserve rate hikes. It bounced back to trade at around $1.003 as of 2:40 p.m. in London.

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