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Euro, falls below parity as USD gains  

The euro slid back below parity with the U.S. dollar Monday, a clear sign of the diverging fortunes of the European and U.S. economies currently

The euro fell as low as $0.9992 before recovering to $1.0004, according to FactSet.

Tweet on Euro v Usd parity 


The currency briefly fell below parity in mid-July for the first time in 20 years, but rebounded in recent weeks as the dollar’s rally lost steam.

Many investors expected the euro’s rebound to be short-lived, as Europe faces an energy crisis and rising odds of a recession.

The weaker economic outlook leaves the European Central Bank with less room to raise interest rates compared with the Federal Reserve, where the economy remains on relatively solid footing.

  • Higher rates typically boost currencies by drawing in investors seeking yield.

In recent days the dollar has sprung back to life, not just against the euro but versus a broad swathe of global currencies.