Carole Ferry, edited by Ophélie Artaud 07:58, July 06, 2022

This Wednesday morning, the euro hit its lowest level in almost 20 years and fell below the 1.03 dollar mark.

The war in Ukraine, but also the energy crisis affecting the euro zone are mainly responsible for this.

Investors, for their part, are increasingly hesitant.

It hadn't happened for almost 20 years.

The euro is at its lowest and fell below the 1.03 dollar mark on Wednesday morning.

The war in Ukraine does not spare the single currency.

In June, growth in economic activity in the euro zone slowed sharply in the private sector, as investors are increasingly cautious.

The eurozone on the brink of recession?

What is particularly worrying are all the indicators showing that the euro zone seems to be on the verge of recession.

Added to this is inflation that continues to climb with no prospect of calm.

The United States has also been hit hard by the rise in prices, but with a much more dynamic monetary tightening policy than in Europe.

This may explain why the dollar appears to be a better safe haven than the euro.

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Europe is also much more exposed to the energy crisis.

"The United States is basically self-sufficient while we are still very dependent, even though Europe has taken steps to try to phase out a lot of the oil or gas that comes from Russia. Look the difficulty that a country like Germany may have to do without gas imports from Russia. And that can worry the markets," explains economist Christian de Boissieu.

The euro could very well pick up some color in the coming days, or even play yo-yo.

If the decline continues, however, we will have to expect an increase in the price of oil since we are buying it in dollars.

And if you have planned a stay in the United States this summer, it may cost you a little more too.