Euro drops below $1 for the first time in 20 years

The euro has fallen below the U.S. dollar in value for the first time in 20 years. The euro fell as low as $0.9998 against the dollar. The European currency is down 19% from this time last year, and has fallen sharply from its 2008 peak, when it was worth $1.60.

However, U.S. importers will find goods purchased from Europe to be relatively cheaper, as well as American tourists traveling to Europe. Anything purchased in countries that use the euro, from hotel stays to meals and clothing, will be roughly 15% cheaper compared with last year.

The euro was launched in 1999, when it was worth $1.19, but then fell through the $1 mark in February 2000, hitting a record low of 82.30 cents in October 2000. The European currency rose above parity in 2002 as large trade deficits and accounting scandals on Wall Street weighed on the dollar.

The recession fears are pushing the euro lower as the continent faces surging energy costs amid a standoff with Russia over its natural gas supply. Disruptions in supply chains from Russia’s war in Ukraine also threaten a recession on the continent.