The European Union's EURO reached parity with the U.S dollar today as recession fears and the ongoing Russo-Ukrainian War continue to tremble international markets.
Several members of the European Union have been put into a difficult situation as more nations pledge their support to Ukraine, all while still depending on Russian natural gas imports. On Monday, the Russian-German Nord Stream gad pipeline temporarily shut down for scheduled maintenance repairs. Although expected, this leaves cause for concern as Euro leaders fear this may be an opportunity for the Kremlin to halt natural gas distribution and other energy services officially. This action, of course, would be a response to the overwhelming sanctions placed upon Russia by Euro nations for their continued support of Ukraine.
The fear of Russian action is not the only factor affecting the EURO's decline. While European problems continue to rise, traders are skeptical of the EURO's ability to stay above the dollar. Last month, the U.S treasury's aggressive interest rate increase led the U.S dollar to strengthen in a volatile market. The U.S dollar had increased roughly "8.7% in the first half of the year" -WSJ.
The last time both currencies equaled each other was in 2002.