The Euro has hit a five-year low as of Wednesday as the US Dollar has hit a five-year high. As of Wednesday, the Euro was worth $1.05. Economists state that Russia’s suspension of gas to two eastern European countries and the USD high are contributing factors.
Russia’s demand was payment in roubles. However, both Bulgaria and Poland were unwilling to pay in roubles due to economic sanctions imposed on Russia due to the invasion of Ukraine. As a result, Russia cut off its gas to Poland and Bulgaria.
The US Dollar is experiencing its best month since January 2015, and today the Euro is at its lowest since the spring of 2017. The Federal Reserve is about to increase interest rates. This news from the Federal Reserve suggests that the US economy will weather the storm of the Russo-Ukrainian War better than Europe.
The drop in the Euro is good news for me as I am currently residing in Greece. When I first came here in March, the Euro was $1.10.
However, at the time of writing, the Euro has rebounded slightly to $1.06.
