The year 2022 was the last time the euro reached parity and even fell below the dollar.
This was largely due to the energy crisis: as the euro area is a net importer of fossil fuels and the US a net exporter, the surge in energy prices worsened the euro area's terms of trade, causing the euro to depreciate against the dollar. Back our independent journalism by becoming a supporting memberGet EU news that matters
Judith Arnal is a Spanish economist with the Real Instituto Elcano think-tank and the Centre for European Policy Studies.
Judith Arnal is a Spanish economist with the Real Instituto Elcano think-tank and the Centre for European Policy Studies.