Xinhua news agency, Frankfurt, on July 12th (reporter Shan Weiyi) - Data from the European foreign exchange market showed that the exchange rate of the euro against the US dollar once fell to 1:1 on the 12th, which was the first parity between the euro and the US dollar since December 2002.

According to the European Central Bank, the exchange rate of the euro against the US dollar on the 11th fell to 1:1.0098 from 1:1.0163 of the previous day, with a cumulative decline of more than 11% since the beginning of 2022.

According to the analysis of the website of Handelsblatt of Germany, the continuous decline of the euro against the US dollar is related to the strengthening of the US dollar, high inflation in Eurozone countries, the spread of the European energy crisis and the rising risk of European highly indebted countries under the expectation of raising interest rates of the European Central Bank.

Ebrahim Rahbari, a currency analyst at Citigroup, predicts that the euro will continue to fall after falling to parity with the US dollar.