The US currency traded above the euro on the Russian exchange
The euro fell below the US dollar on the Moscow Exchange on Tuesday amid fears that the energy crisis will tip the European Union into recession.
The dollar-ruble rate stood at 58.70 while the euro decreased to 58.52 against the ruble, as of 10:56 GMT.
On international exchanges, the euro edged closer to parity with the dollar. In choppy forex trading, the European currency slid to just 1.0001 to the dollar, its lowest level in 20 years. The euro has fallen 12% against the greenback so far this year, as the surge in energy prices in light of the conflict in Ukraine and sanctions against Russia, the continent’s main energy supplier, has hurt European economies.
“For the first time in 20 years, parity has formed between the euro and the dollar as the US currency continues to rise in anticipation of the tight monetary policy of the Federal Reserve,” Yegor Zhilnikov, chief analyst at the Economic and Industry Analysis Department of Promsvyazbank, told RBC daily. “We believe that until the ECB meeting {on July 21}, the dynamics may continue, and the dollar will become more expensive than the European currency,” he explained.