Euro briefly worth as much as dollar again | Economy

More than a month ago, the euro and dollar were also worth exactly the same amount, which is also known as parity. That was the first time since 2002. A few days later the euro was even worth less than a dollar for a while, but after that the European single currency became more expensive again.

The weaker euro makes it more expensive for people who pay with the single currency to buy dollars, for example to go on holiday to the United States. For Americans, it is actually becoming cheaper to buy euros to spend a holiday in Europe.

Importing American goods is also becoming more expensive for European companies, while companies that export can benefit from the cheap euro. Crude oil imports into Europe will also cost more because oil and other commodities are settled in dollars. That could drive inflation further.

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