Why is the euro falling?

The euro falls due to the war of the Russian Federation against Ukraine.

The currency is under pressure from the risk of Russia completely blocking the supply of gas to European consumers.

Strong support for the dollar is provided by the difference in discount rates in the US and the Eurozone.

The US Federal Reserve has been fighting inflation much more vigorously than the European Central Bank in recent months.

The flow of money from euros to dollars strengthens the reputation of the American currency as reliable in the era of crises. 

Currently, analysts predict that the fall of the euro will continue along with the continuation of the energy crisis in Europe.

Experts of the Japanese bank Nomura International predict a drop in the single European currency to the level of 0.95 dollars.

Even now, the euro in Ukraine is worth much less than the dollar.

Reduce savings in euros

Therefore, according to Maksym Orishchak, the leading analyst of the "Center of Exchange Technologies" company, savings in European currency will melt.

Soon, the US Federal Reserve System will raise the rate again, the pressure on the euro will increase, which may cause its rate to fall again.

Therefore, the expert advises to gradually abandon the euro and reduce the share of this currency in your savings.

Orishchak believes that the pressure on Europe's main currency will continue regardless of the behavior of the hryvnia.

Financial analysts note that due to inflation and the war, Ukrainians are now spending more of their savings than they are accumulating.

For those who have savings, Orishchak recommends keeping them in hryvnias, dollars, placing hryvnias in deposits or investing in military bonds.  

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