For the first time since 2002, the Euro has reached parity with the dollar. The currency fell to $0.9998 on Tuesday, though by the end of the day, it was up again, at $1.003, according to CNBC. The US dollar index also hit a 20-year high, at $108.56, though it has slightly dropped since.
In the wake of Russia’s invasion of Ukraine, Europe has been plagued by an energy crisis, with Russia issuing threats to decrease gas supply to the euro zone. That, as well as economic turbulence has depressed the EU’s currency, which was first introduced in 1999.
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Weak Euro, Strong Dollar: What It Means for Fashion
Last week, the euro neared parity with the dollar for the first time in 20 years, reflecting a darkening outlook for Europe’s economy as well as moves to curb inflation in the US. For the luxury sector there may be an upside to the shift.
