While the euro keeps falling against the US dollar, the US dollar index keeps rising. On August 24th, the US dollar index once rose to 108.97, a 20-year high.
"Recently, the exchange rate of the euro against the US dollar once again fell below parity. The main reason is that the market is worried that the economic risks in the euro zone have not been released, and the Fed's interest rate hike and contraction have pushed up the dollar. " Zhou, a macro researcher in the financial market department of China Everbright Bank, analyzed that in recent market performance, investors turned to high inflation transactions, the US dollar rebounded strongly, and currencies such as the euro and the Japanese yen weakened significantly, but more importantly, the market was worried about the economic prospects such as the euro zone. At present, the continuous depreciation of the euro has pushed up the import cost and increased the pressure of imported inflation. In the short term, the euro fluctuates around the parity with the US dollar, paying attention to the economic performance of the euro and the rhythm of the Fed's rate hike and contraction.
Tan Yaling, president of China Foreign Exchange Investment Research Institute, said that due to many uncertainties, such as oil prices and the interest rate hike by the European Central Bank, it is expected that the euro will fluctuate bilaterally in the second half of the year, with the possibility of rebound, and there will be no deep depreciation.