After a few days of struggling, the euro has now broken below the one dollar mark.
This is the first time since 2002 that the European common currency is worth the same as the American dollar.
At noon, one euro was exactly $1,000.
Currencies normally fluctuate slightly, which is why their exchange rates are quoted on the financial markets with up to four decimal places.
Gregory Bruner
Editor in Business.
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The euro zone's susceptibility to a recession is seen as the cause of the weakness.
Experts see the economic development in the United States and the euro zone as similarly disappointing, but in Europe there is also the problem of energy security.
Russia's war of aggression in Ukraine could result in Russia stopping supplying energy to Europe.
Investors therefore currently see euro investments as more risky than investments in dollars.
The current weakness of the euro started at the end of 2020. However, the euro has been in a downward trend since the beginning of 2021.
On January 6, 1.2327 dollars had to be paid for one euro.
In the meantime, however, rising inflation and the interest rate differential between America and the eurozone weighed on the euro.
While the American central bank, the Federal Reserve, started raising interest rates in March, the European Central Bank (ECB) has yet to take such a step.
At the next meeting of the ECB Council, an increase in the key interest rate of at least 0.25 percent is expected, with observers considering larger steps possible.
The fact that one euro costs one dollar may be psychologically relevant, but objectively speaking, this is only a flat value.
Analysts from ING and Deutsche Bank already see $0.95 as a possible price target.
Ulrich Kater, chief economist at Dekabank, recently told the FAZ that, considering purchasing power calculations, a value of $1.30 would be fairer.
Although the euro would trade below par for a short time until the end of the year, the euro was expected to strengthen again in the coming year.