How exchange rates have changed over the past year | Entertainment News

For months, the US exchange rate with the 19-nation eurozone plummeted, so much so that when it reached parity with the US dollar, the common European currency was the weakest since its inception. over 20 years ago. Reasons for the decline include European – mainly German – energy dependence on the Russian gas pipeline. There are growing fears in Europe of a severe recession worsened by energy shortages, prompting factory closures and furloughs for EU industries this winter. The Danish krone pegged to the euro by a fixed exchange rate is the reason why its variation in value is the same.

The value of the pound sterling has plunged so dramatically that it was, on September 7, 2022, the weakest it has been, adjusted for inflation against the dollar since 1985. This drop in value is due to a looming global recession, combined with soaring British and European inflation. There are also concerns that public stimulus spending and tax cuts proposed by the new government of Prime Minister Liz Truss could exacerbate inflationary pressures.

The dollar is stronger than the Norwegian krone, probably due to the weakening of the eurozone economy, fluctuations in oil prices – Norway is a major exporter of oil and gas – and changes, respectively , country interest rates.

The Swedish krona and Swiss franc are also lagging the dollar due to the aggressive rate hikes by the Fed. Investors have traditionally viewed the Swiss franc as a safe haven due to two centuries of Swiss neutrality and, until recent years, strict banking secrecy laws. But even as one of the richest countries in the world, Switzerland is not immune to gas shortages in Europe and is forced to save energy this winter.

In response to the US Federal Reserve’s rate hike, the Bank of England raised interest rates by half a point. The European Central Bank will likely continue to raise rates. Norway and Switzerland also hiked rates, as did the Swedish central bank.