the single currency in great difficulty?

The euro is at its lowest and it’s unheard of. “Just after its introduction in 2002, the euro passed immediately above the dollar to reach a peak of 1.60 dollars in 2008“, recalls the journalist Thibault Franseschet. For a year, the euro has been falling to reach today, 99 cents of dollars. “You have to understand that it is above all a rise in the dollar linked to the energy crisis and the war in Ukraine.“, says the journalist.

“This crisis also raises fears of a risk of recession in Europe, which worries investors who are turning to the dollar, which they see as a safe haven.“, adds the journalist. What consequences? First, an increase in the cost of imports. “For a year, we have seen a rise coupled with a rise in the dollar against the euro, which results in a rise at the pump“, comments the journalist. Conversely, there are more positive consequences: “exports see their costs fall“. Thus, in France there were 10% more American tourists than in 2019, “it is perhaps partly linked to this exchange rate which is more favorable to them“, concludes Thibault Franseschet.