The European Commission denied this Thursday that the fact that the euro has reached parity with the dollar this week is due to the weakness of the common currency, and attributed it to the strength of the greenback and its role as a “safe haven” in the current context.
In a press conference, the Commissioner for the Economy, Paolo Gentiloni, argued, for example, that the euro is now “stronger” against the Japanese yen, so the depreciation against the dollar is “mainly” due to the US currency strength.
“The euro is showing its strength, but the dollar is getting stronger in this situation,” explained Gentiloni, who also pointed out that parity “cannot be conceived as a positive development” for the eurozone even though it will benefit those club economies that are “export-oriented”.
Along the same lines, Gentiloni warned that a stronger dollar “will have very serious consequences, especially for emerging economies” and also for the debt of low-income and developing countries.
The euro reached parity with the dollar this Wednesday and, even at some points in the session, even fell below the US currency for the first time since the end of 2002, although it quickly recovered positions due to the improvement in the markets despite high inflation in the US.
In the session this Thursday, the common currency of the euro zone oscillates around 1.0030 dollars.