For approximately two decades the euro was higher than the dollar. There are different factors in the valuation of a currency.
Some of the factors of that valuation are changing as a consequence of the “economic misfortunes" that Europe is suffering at this moment.
The Russian invasion of Ukraine - a country that is not a member of the European Union – is impacting a lot of things on the EU and its members.
This is the subject of a story posted for the Wall Street Journal written by Caitlin McCabe, today.
The story titled “Surging Dollar Raises Possibility of Parity with Euro” starts with this statement: “Europe’s economic misfortunes have sent the euro not far from equal value with the dollar for the first time in nearly two decades.”
We will not discuss in this RETHINKING what is good or bad about the new economic crisis.
However. we have to recognize that the energy crisis that is afflicting Europe at this moment has serious implications.
This was my comment posted in the blog section of the WSJ Online: “Now, Europe is in a very bad shape, and this impacts the Euro's value.”
Other members of the WSJ Community agreed with LIKED about this statement.
The wrong energy politics of Germany and other European countries for more than a decade have negative consequences right now.
By the way, I remember when the German Chancellor Angela Merkel decided to close the nuclear plants of the country, dreaming with Mr. Putin's Pipelines.
SOURCES: The Wall Street Journal, Deutsche Welle, my own think tank
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