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Euro falls to parity against the dollar, adding to inflation woes.


L.A.T.1961
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The euro briefly hit parity against the U.S. dollar for the first time in 20 years on Tuesday.

The single currency has lost more than 10 percent of its value against the greenback since the start of the year amid fears that a sharp economic slowdown in the eurozone.

The euro may well not have reached its trough given persistent risks that a Russian gas cutoff could throw the region into deep recession, analysts warn. This scenario could in turn significantly constrain the ECB’s ability to raise interest rates, which it has yet to do.

If the euro continues to slide, "no doubt [the ECB] will be quite concerned by the move — especially if it develops into a 'sell the Eurozone' mentality," said ING economist Chris Turner. 

https://www.politico.eu/article/euro-fall-parity-against-dollar-adding-inflation-woes/

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When dealing with fiat currencey, comparing different variants of such is like comparing the worth of sheep manure against that derived from male-gendered cattle

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5 hours ago, L.A.T.1961 said:

The euro briefly hit parity against the U.S. dollar for the first time in 20 years on Tuesday.

The single currency has lost more than 10 percent of its value against the greenback since the start of the year amid fears that a sharp economic slowdown in the eurozone.

The euro may well not have reached its trough given persistent risks that a Russian gas cutoff could throw the region into deep recession, analysts warn. This scenario could in turn significantly constrain the ECB’s ability to raise interest rates, which it has yet to do.

If the euro continues to slide, "no doubt [the ECB] will be quite concerned by the move — especially if it develops into a 'sell the Eurozone' mentality," said ING economist Chris Turner. 

https://www.politico.eu/article/euro-fall-parity-against-dollar-adding-inflation-woes/

The value of the Ruble continues to rocket.

Its so bad its funny.

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13 hours ago, Cookie Monster said:

The value of the Ruble continues to rocket.

Its so bad its funny.

I guess when there are less things for Russians to buy in the shops due to embargoes, or for business, having a stronger currency doesn't help much.

And the Russians can't drink oil and gas. ;) 

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5 hours ago, L.A.T.1961 said:

I guess when there are less things for Russians to buy in the shops due to embargoes, or for business, having a stronger currency doesn't help much.

And the Russians can't drink oil and gas. ;) 

Embargoes mean the home economy has to produce whats needed or import from still friendly countries.

This was one of the high reasons for high interest rates, to stop explosive growth driving up inflation even higher.

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