Why The Euro Has Fallen To $1, What It Means For The Rupee

Why has the euro fallen to $1 and what does it mean for the rupee? The euro's decline in value relative to the dollar indicates that investors are shifting funds away from the Eurozone and toward the US.

The euro and the US dollar were equal on Tuesday. In other words, the value of the exchange rate changed so that one euro equaled one dollar. Only twice since 2002 has the euro dropped to this level against the dollar (see chart below). The euro's decline in value relative to the dollar indicates that investors are shifting funds away from the Eurozone and toward the US.

Euro-Dollar down to 20-year low

Why is the value of the euro declining against the dollar?

In general, since the beginning of 2008, the euro has been losing strength against the dollar. However, the reduction has been substantial since the beginning of 2021. The energy crisis after Russia's conflict against Ukraine has been the latest blow to the currency rate.

There are two main factors contributin...

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