EUR/USD falls below 1 to 1 again, hitting 20-year low

　　Guangzhou Daily News (all media reporter Wang Chuhan) Recently, the exchange rate of the euro against the US dollar has continued to decline.

On August 24, as of press time, the euro against the US dollar once fell to 0.99351.

On August 23, the spot exchange rate of the euro against the U.S. dollar fell below 1:1, hitting a 20-year low of 0.9902 at one point during the session.

It is worth noting that the previous month, the euro-dollar exchange rate fell below parity for the first time in 20 years, when the euro-dollar hit a record low of 0.9952, and now this value has been "refreshed".

　　While the euro continued to fall against the dollar, the dollar index rose all the way.

On August 24, the U.S. dollar index rose to 108.97 during the session, hitting a new high in 20 years.

　　"Recently, the exchange rate of the euro against the US dollar has fallen below parity again. The main reason is that the market is worried that the economic risks in the euro zone have not yet been released, and the Fed has raised interest rates and reduced its balance sheet to push up the US dollar." Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank, analyzed the recent market performance. , Investors turned to high inflation transactions, the dollar rebounded strongly, currencies such as the euro and the yen weakened significantly, but more importantly, the market was worried about the economic prospects of the euro zone and other countries.

In the current environment, the continued depreciation of the euro has pushed up import costs and increased imported inflationary pressures.

In the short term, the euro fluctuated near parity against the dollar, focusing on the euro's economic performance and the pace of the Fed's rate hike and balance sheet reduction.

　　Tan Yaling, president of the China Foreign Exchange Investment Research Institute, said that due to the face of many uncertain factors such as oil prices and the European Central Bank's interest rate hike, it is expected that the euro will fluctuate bilaterally in the second half of the year, and there is a possibility of a rebound, and there will be no deep depreciation.