This is not a historic low, but a definitive low. There are several reasons for this.
- in time of a crisis, the world seems to ralley around the dollar, as it is backed by the strongest economy and the strongest military.
- this crisis has hit Europe hard, as it is not only close to the war, but of course, too dependant on Russian oil and especially gas.
- there was a lot of inflation internationally, the US federal bank was the first to raise interest to combat inflation. The EU lags behind and is limited in action due to the fear of destabilizing some of its member countries with too high of a debt.
Consequently, there is a lot of good reason for the Euro to be weak at these times. However, if the energy crisis can be solved and the war contained, a weak Euro also is also pushing exports from the EU. So there is a lot of reason for this trend to be stopped, if not reversed, until the other extreme is reached again.
- in time of a crisis, the world seems to ralley around the dollar, as it is backed by the strongest economy and the strongest military.
- this crisis has hit Europe hard, as it is not only close to the war, but of course, too dependant on Russian oil and especially gas.
- there was a lot of inflation internationally, the US federal bank was the first to raise interest to combat inflation. The EU lags behind and is limited in action due to the fear of destabilizing some of its member countries with too high of a debt.
Consequently, there is a lot of good reason for the Euro to be weak at these times. However, if the energy crisis can be solved and the war contained, a weak Euro also is also pushing exports from the EU. So there is a lot of reason for this trend to be stopped, if not reversed, until the other extreme is reached again.