Euro Surges to Four-Year High Against U.S. Dollar
(MENAFN) The euro surged to its highest level against the US dollar since 2021 on Tuesday, following the announcement that annual inflation in the eurozone had met the European Central Bank's (ECB) 2% target.
By 0930GMT, the euro had risen 0.1% to 1.1821 against the dollar, marking its strongest position since August 2021.
This uptick came after official confirmation that inflation in the eurozone had reached the ECB's medium-term target of 2%, aligning with market predictions.
The primary contributor to inflation was services, which saw a 3.3% rise in June. This was followed by food, alcohol, and tobacco, which increased by 3.1%, and non-energy industrial goods, which rose by 0.5%.
In contrast, energy prices were a significant drag on inflation, falling 2.7% year-on-year.
When the euro was first launched in 1999, the exchange rate against the dollar stood at 1.17. However, the currency quickly depreciated, dropping to 0.82 by October 2000, before regaining ground between 2002 and 2008.
The euro reached a record high of 1.6 in 2008 but gradually declined in value. By September 2022, it had fallen to parity at 0.96, its lowest point in over 20 years.
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