According to reports, due to the rise in economic recession, investors have reduced the betting rate of the European Central Bank’s interest rate hike, and the exchange rate of the euro against the US dollar has fallen to the lowest since 2002. On July 5th, the exchange rate of the euro against the US dollar fell 1.9%, and it exchanged for $ 1.02 per one euro, setting the largest decline in a single day in the past six years. Over the past 20 years, the euro has never been so weak to the US dollar: so far this year, the euro has depreciated by 9.4%against the US dollar. If it is referenced in January 2021, the decline has reached 16.6%. More and more analysts point out that the euro and the US dollar will reach parity before the end of the year.
One of the most obvious consequences of the euro’s depreciation of the US dollar is that any of the products bought and selling in the US dollar become more expensive in the European Union: this directly affects the price of raw materials in Europe, and these raw materials are usually priced in the US dollar. Especially for natural gas and oil, these two products soared to historically high due to the indirect consequences of the Russian and Ukraine War, and the weakness of the euro increased this phenomenon.
In the case of strong US dollars and the sharp decline in the euro and pounds, the renminbi is relatively stable. On July 6, the US dollar index rose 107, a new high of 20 years, and the exchange rate of the US dollar to the US dollar fell only 22 basis points. Anti -decline. As of press time, data from the China Foreign Exchange Trading Center showed that the intermediate price of the RMB to the US dollar today was 6.7143 yuan, and 1 euro was 6.8384 yuan.