On Tuesday morning I plugged 1 Euro into Google’s online calculated and received this result:
For the first time in 20 years, the exchange rate between the euro and the US dollar is dead even. And this means that in Israel, those two coins are worth NIS 3.48.
Like many things these days, the Euro’s fall happened courtesy of President Vladimir Putin, in response to fears of recession resulting from high inflation and the grim future of energy supplies in winter.
The European Union normally receives about 40% of its gas from the Russian pipelines, and now is trying to reduce its dependence on Russian oil and gas. Meanwhile, Russia has shut down its supplies for ten days for scheduled maintenance, which no one is sure will end in ten days. Russia has also cut back gas supplies to some EU countries by 60%.
According to Reuters, the US dollar is gaining based on expectations that the Fed will continue to aggressively raise rates as it tackles soaring inflation.