As of Tuesday the 12th of July 2022, 1 euro equals 1 dollar. The shift means European consumers will now have to pay more for goods that are coming from Europe. However, European exports are now valued at a lower rate than they were before and can be acquired by global consumers with relative ease.
Due to Russia’s invasion of Ukraine, inflation has reached a higher rate in Europe. The U.S. is less dependent on Russian oil than the EU
The euro first reached value parity with the dollar in December 1999. For three years after the 2001 Tech Bubble burst, the dollar was stronger than the euro. Worried investors treated USD as a safe-haven asset to hold during the burst of the tech bubble…but after 2003, the Euro has been stronger than the US Dollar.
Rumours of an impending economic crisis in Europe typically cause investors to spend more on the dollar.