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Euro Hits Parity With U.S. Dollar for First Time in 20 Years



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Take a look: €1 = $1.With a war on the eurozone’s border, an uncertain energy supply from Russia and a growing risk of recession, the pressures bearing down on the euro finally grew so strong that on Wednesday it dipped to parity with the U.S. dollar — a one-to-one exchange rate.It’s a sight unseen since December 2002, in the early years of the currency’s existence. The aesthetically pleasing round number has become a focal point for investors.In foreign-exchange markets, “1.00 is probably the biggest psychological level around,” analysts at the Dutch bank ING said in a note to clients.Even more remarkable than breaching this level is how quickly the euro has dropped against the dollar. The currency, shared by 19 European countries, has slumped more than 11 percent this year, as the dollar’s strength has been almost unmatched.The euro’s sharp decline has come as the dollar, for generations one of …

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