One Euro is exactly equal to one dollar.


As of Tuesday morning, one Euro is exactly equal to one dollar. Euro is at its weakest against the dollar since the winter of 2002, twenty years ago. 

The euro has been significantly weakened due to two major reasons

The first is Europe’s energy crisis due to the war in Ukraine. Russia supplied nearly 40 per cent of Europe’s gas before the war with Ukraine. Europe attempted to source fuel from other countries bypassing sanctions and partial bans against Russian gas and fuel in the EU. In retaliation, Russia has cut back supplies of fuel to European countries that depend on it. The Nord Stream pipeline, which links Russia to Germany, was shut down.

In addition to the fuel crisis, inflation has also contributed to the euro’s drop in value. The European Central Bank (ECB) has stated that it will increase interest rates for the first time since 2011. In Addition to this, The US Federal Reserve increased interest rates by 75 points and is expected to raise them even further, causing investors to choose the dollar over the euro due to fears the that ECB has delayed in fighting inflation in Europe. 

Comments

Post a Comment

Popular posts from this blog

India surpasses the United Kingdom to become the world's fifth largest economy.

Image
  According to IMF projections, India has overtaken the UK to become the fifth-largest economy in the world, trailing the US, China, Japan, and Germany. To evaluate India’s economic growth, over the past decade India acquired the 5th position from 11th, while the UK remained at the 5th position for the past decade. This has been expected for some time. Bloomberg came to this conclusion by using the dollar exchange rate on the last day of the relevant quarter. The UK's nominal GDP for the April-June quarter was $763 billion, much below India's $823 billion GDP for the same period. India's economy is growing by 7% while the rest of the world is heading into a recession. Over a significant period of time, the real and nominal growth rates of the Indian economy have outpaced those of the UK. India's economy has expanded nominally at a pace of 5.71% CAGR, compared to the UK's GDP, which grew at a meagre 1.76% over the last decade Inflation rates of 10% in the UK, 9% in t...
Read more

Debt is fueling the expansion of India's richest individual.

Image
A tale of disparities also emerged in the approaches taken by the richest and second-richest Indians. Mukesh Ambani, the second richest, engaged in a deleveraging (the reduction of debt) drive to safeguard his company’s zero debt status, which involved giving up holdings in the group's future-facing areas of technology and retail. In contrast, Gautam Adani, the richest, continued on an expansion spree powered by debt. Over the previous five years, debt held by the Gautam Adani-led Group has climbed from Rs. 1 trillion to Rs. 2.6 trillion, driven by the expansion of various ventures which include investments in renewable energy, procurement of transmission business, and venturing into more recent areas such as data centers, airports, and motorways (Adani Enterprises). Will it survive in the long run? Although the markets appear to be optimistic in the group, history, being the most effective teacher, declares that Reliance Power and Reliance Infra in 2015–16 had identical leverage m...
Read more

How does Google Pay generate revenue given that UPI is a free service?

Image
The free transactions offered by United Payments Interface, or UPI, systems are a major factor in why digital payment use has advanced in India. The UPI system allows users to send money to any bank account or pay bills through a single app without any hassle.  However, in its discussion paper dated August 17, the Reserve Bank of India requested feedback from stakeholders on the notion of implementing a charge for the system, if transactions surpassing a specified amount may be invoiced.  Furthermore, the ministry declared in a tweet that "UPI is a digital public benefit with enormous convenience for the public and productivity gains for the economy." and that it will remain a free service, and the government is not thinking about charging for UPI services.  Thus, the topic of how UPI service providers such as Google Pay, Paytm, and PhonePe generate revenue is raised. In the absence of revenue from charges on transactions, UPI service providers have additional ways to mon...
Read more