EXPLAINER: What’s the impact of euro parity with the dollar?

By The Associated Press

The euro has hit parity with the dollar, falling to its lowest level in 20 years and even skirting just below a one-to-one exchange rate with the U.S. currency this week. That’s the market’s verdict on Europe’s economic prospects. The euro is falling as fears of a recession grow due to Russia restricting natural gas supplies. European officials say it’s retaliation for the bloc’s support for Ukraine amid Russia’s war. Moves by the U.S. Federal Reserve are strengthening the dollar with higher interest rates. U.S. tourists may get a break on some of their travel bills, but Europeans will pay more for imported oil because it’s priced in dollars.