Euro plunges to near-parity with US dollar
THE EURO came within touching distance of parity with the dollar yesterday as monetary policies on either side of the Atlantic diverge.
The Eurozone began using new money to buy government debt this week, which is impacting the currency, despite being outlined in advance. The euro fell by 1.45 per cent against the dollar yesterday to $1.069 – a 12-year low.
Deutsche Bank economists believe the euro will break parity and hit $0.85 by 2017.
Meanwhile, a strong set of labour market data in the US means that the Federal Reserve could begin to raise interest rates soon.
US employers had 5m job openings at the end of January, according to figures released by the Labor Department. It is the highest level of job openings for 14 years.