
Not so long ago, participants in the financial market predicted whether the euro would ever reach parity with the dollar, but now it appears the question is not “if”, but “when,” Bloomberg writes.At the present time experts are revising their forecasts for the single currency of the Eurozone after the President of the US Donald Trump announced the imposition of tariffs on the EU. These speeches caused the euro to fall more than 2% to 1.0141 dollars, the lowest
level since November 2022 year. The euro is decreasing because of fears that US restrictions on Europe could force the European central bank to reduce interest rates more actively. This will increase more the gap between the cost of borrowing
in Euro and the US and increase the attractiveness of the dollar as an investment currency. “It’s hard to be optimistic about the euro,” says said Mizuho Bank expert Jordan Rochester, who considers that in the first quarter the exchange rate will drop to
parity in the relationship to the dollar: “Markets now should see a much higher likelihood of the imposition of general or specific tariffs by the EU.” Some
expertsexpecttheeuroto falltoparitywiththedollarbythemidyear,butthere areanalystswhoconsiderthatthiscouldoccuras early astheendofthisquarter.