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Euro trades below the dollar for the second day

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For the second consecutive day, the euro traded yesterday below the dollar. Thus, it closed the day at US$0.9970, according to Bloomberg. Specialists consulted by La República explain that the main factor driving this trend is the energy problems caused by the conflict between Russia and Ukraine.

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“The increase in the cost [de la energía] it has happened in a very important way, and this is generating an inflation effect for the European economies”, says Javier Pineda, CEO of the Billex platform, who adds that it should be taken into account that the US. it has been more dynamic in raising its interest rates than in Europe, which has contributed to the dollar strengthening against the euro.

At a local level, the euro has accumulated a fall of -20.12% in the last year, as reported by the Central Reserve Bank (BCRP). Thus, yesterday’s session closed at S/3.8523, a figure lower than the dollar price which was quoted at S/3.8630.

The US currency fell 0.49% compared to Monday’s close when it recorded S/3.8820, and as reported by the BCRP, so far this year it has accumulated a decline of -3.21%.

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The US currency currently has a higher price than the euro. Photo: AFP

What is the impact?

“Businessmen who export to Europe are definitely suffering from the euro if they are accepting payments in this currency, and those who import and have invoices in euros are benefiting. But this is in the short term”, assured Omar Azañedo, CEO of Noncash.pe.

Along these lines, Azañedo also points out that there are those who are taking advantage of acquiring euros because it is already known that this is a cycle and Europe is likely to rebound next year and some gain can be made from the euro that are acquired in these months.

Both specialists agree that in the second half of the year the euro will maintain parity with the dollar, or even be a few points lower. Everything depends on how the conflict in the Old Continent develops.

Infographic – The Republic

Source: Larepublica

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