Euro Zone

Euro slumps to dollar parity for the first time in two decades

Energy crisis and recession risks are weighing on the currency

The euro, the currency for 19 countries and around 340 million people, has had many ups and downs since it began in 1999. Picture: Getty

The euro has suffered a swift and brutal slump this year, and now it’s crossed a major threshold for the first time in more than two decades: parity with the dollar.

The 12 per cent decline is the result of multiple pressures, from the war in Ukraine to an energy crisis and the growing risk that Russia cuts off gas exports and pushes the euro area into recession. Add in central banks moving at vastly ...