The Euro is now worth less than the dollar. Today, the currency fell as much as 0.4 percent taking it to $0.9899. So far in August, the currency has fallen by 2.9 percent against the dollar in its third consecutive month of declines.
The currency first dropped below the value of the dollar on July 13 2022.
At its peak in 2008, the Euro was worth $1.60.
Speaking to the Financial Times, economists at Goldman Sachs said: “Today’s euro area data was in line with our expectation of subdued manufacturing activity and a slowing in services momentum.”
This comes as the Euro faces high debt and rapidly spiralling inflation.
In June, eurozone inflation rose to a record level of 8.6 percent and energy prices rose at an annual rate of almost 42 percent, compared with 39 percent in May.
The rising prices come in the wake of the global pandemic and have been exacerbated by Russia’s war in Ukraine, which has put pressure on gas supplies to Europe.
Mounting fears of a recession are pushing the value of the Euro even lower, as confidence has plummeted.
Earlier this month, EU critic Eric Noirez warning that the euro has “reached the end of its tether”.
He told Express.co.uk: “The situation in the Eurozone is dramatic, not to say desperate.
“We have record inflation, a record trade deficit, record national debts, continuing deindustrialisation, growth still at half-mast and, finally, an increasing loss of confidence of investors and economic actors.
“The euro is a system that has reached the end of its tether.
“But this is not very surprising, since the euro has always been a totally dysfunctional monetary system, which the Europeanists have wanted to keep alive at all costs, through a dogmatism that is truly irrational.
“Today, the people who make up the EU are simply about to pay the price of this political choice, which bore the seeds of disaster within it.”
Last month, the European Central Bank raised interest rates for the first time in more than 11 years in an attempt to control soaring inflation.
The ECB increased its key interest rate by 0.5 percentage points to 0.0 percent and plans further hikes this year.
The rate has been negative since 2014 in a bid to boost the region’s economy after years of weak growth.
The ECB is scheduled to convene for another policy meeting on September 8, when they may choose to raise rates again.