By Tom Hurley • 05 July 2022 • 14:47
The Euro PLUMMETS to 20-year low against the US dollar. Image: Route66/Shutterstock.com
The value of the Euro went down over 1.2 per cent against the US dollar to mean it single market’s currency is at its lowest value against the American currency since December, 2002.
The news comes only days after inflation in Spain hit its highest level since 1985, triggering the loss of €110,000 million in wages and savings in the 12 months leading up to Thursday, June 30.
The Euro has been devalued against the US dollar by 9 per cent so far in 2022, and a staggering 13 per cent over the last 12 months.
Experts warn that the slide is set to continue and that the European Central Bank will need to slow interest rates in attempts to prevent a recession.
“The evolution of interest rates in the US against the euro zone will continue to attract capital flows to the dollar zone,” said Ignacio de la Torre, chief economist at Arcano Partners.
The single market currency is incredibly close to being on equal value with the US dollar.
With the Euro’s value continuing to slide, it could play a role in increasing energy prices in Spain once again.
Electricity prices for customers in Spain on Tuesday, July 5, is 146.92 per cent more expensive than on the same date a year ago.
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