Africa-Press – Angola. The Euro recorded losses again and traded below one dollar, at 0.9960 dollars, about two hours after having traded at 0.9953 dollars.
Early in the session, the single currency fell 0.40 percent to $1.002, with losses accumulated since January 2022 standing at nearly 12 percent.
On Wednesday, the Euro was in the news after reaching parity with the Dollar, in which currencies were exchanged at the same value, something attributed to pressures exerted on the European currency by the action of central banks to control the rise in prices.
The European currency slipped shortly after it was announced that the year-on-year inflation rate in the United States exceeded economists’ estimates, accelerating to 9.1 percent in June, leading to a more aggressive hike in interest rates by the Federal Reserve, which, in turn, tends to give strength to the Dollar against the main partners.
The weaker Euro makes acquisitions outside the monetary union “more expensive”, especially of raw materials such as oil, which are usually quoted in dollars on international markets.
In this way, with the Euro, fewer goods priced in dollars are purchased, in addition to the weakening of the currency making national exports more competitive, since, with a stronger dollar, the international buyer purchases more of a certain good priced in euros.
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