Euro Falls To Its Lowest In 5 Years Against Dollars

Published

3 years ago

May 2, 2022

Iexclusive News Nigeria

Euro Falls To Its Lowest In 5 Years Against Dollars plunges double digits against the Russian ruble

iexclusivenews reports that The Euro has dropped to a five-year low against the dollar as the battle in Ukraine continues.

The Euro has lost significant value when compared to the Russian Ruble, dropping by double digits YTD.

The Russian currency has made significant gains against the Euro, with the EUR/RUB currently trading at 74.69, down 1.21 percent on the day and 12.52 percent YTD.

The EUR/USD was trading at 1.0521 at the time of writing, its lowest level in five years. The EUR/USD had lost about 2% in a week of trade and was down 7.48% YTD.

The euro has plunged to a five-year low, rekindling the possibility that the currency would reach parity with the dollar for the first time in two decades. As worries of European recession urge speculators to pile on the pessimistic bets.

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Further euro weakness, on the other hand, might trigger ECB action, as it did in 2000 and 2011. Particularly if euro weakness causes bond market disruptions in weaker nations like Italy.

Euro drops to its lowest in 5 years against dollars

Russia’s plan to cut off gas supplies to Bulgaria and Poland is the currency’s latest setback. Which has already been hampered by the ascent of the dollar and extensive COVID-related lockdowns in China. A crucial market for bloc exports.

As the continent scrambles for a coordinated response to Russia’s weaponization of its energy resources. The European Commission has cautioned businesses not to give in to Russia’s requests to pay for gas in rubles.

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Uniper, a German company, declared, however, that payments for Russian gas will be sent to a Russian bank rather than a European one.

Despite strong opposition in the form of the most severe economic sanctions ever imposed on a country. The Russian currency, the ruble, looks to be gaining.

Because of the Ruble’s performance in the foreign exchange market, the Russian Central Bank felt safe enough to slash interest rates to 14% in order to promote economic development.