Euro falls against the dollar for the first time in 20 years

The euro was trading at $0.99 after the boomerang effect of the sanctions imposed on Russia.

The dollar on Wednesday exceeded the value of the euro for the first time in a period of 20 years, after the currency of the European Union experienced a fall of 0.4 percent this morning.

The euro was quoted at 0.99 dollars after the growing energy crisis affecting the European region and the boomerang effect of the sanctions imposed on Russia due to the military operation in Ukraine.

Similarly, forecasts suggest that the euro will continue to decline in value given the uncertainty of investors due to the rise in gas prices and excessive dependence on Russian hydrocarbons.

For its part, the US Federal Reserve has raised interest rates in order to counteract inflation. Specialists expect Washington's interest rate to rise to 3 percent.

The head of currency analysis at Citi, Ebrahim Rahbari, assures that the current international situation "remains very favorable for the dollar" since it is less exposed to the consequences of the crisis in Ukraine.

Earlier Societe Generale chief global currency strategist Kit Juckes noted that "Europe's energy dependency on Russia is falling, but not fast enough to avoid a recession if the pipeline closes."

Likewise, the fall of the euro has caused import prices to rise, which is increased in the case of raw materials which, at the same time, affects local prices.