Berlin.– The euro closed this Monday below parity with the dollar, an exchange rate of one to one that it had already reached in mid-July, and thus linked with last week’s losses after a quiet start to the day.
The euro was exchanged around 3:00 p.m. GMT at 0.9964 dollars, compared to 1.0045 dollars in the last hours of the European currency market trading last Friday The European Central Bank (ECB) set the reference exchange rate for the euro in 1.0001 dollars.
Despite the initial pressure, the euro had managed to recover around German noon, although the improvement did not last and in the last hours of trading it remained permanently below the dollar.
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Expectations that interest rates in the United States will rise more than in the Eurozone continued to weigh on the community currency, whose price was also affected by the effects of uncertainty about the future of Russian gas supplies.
The Bundesbank (German central bank) considers it highly probable that the locomotive of the Eurozone suffers a contraction in the second half of the year and foresees high levels of inflation, of up to 10 percent, driven by the cost of energy and other factors.
The contraction could even lead to a recession in the first quarter of 2023, according to Bundesbank experts in their August monthly report.
The single currency was traded in a fluctuation band between $0.9962 and $1.0048.
