US Dollar Surges to Strongest Level... Euro and Won Hit Lowest in 20 and 13 Years Respectively

Impact of the European Energy Crisis

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The US dollar is showing a super-strong performance. The reason is attributed to the euro weakening as the European energy crisis resurfaces.

According to major foreign media on the 23rd, the dollar index (an index showing the value of the dollar compared to major currencies) rose to 108.9 that day. This is close to the recent 20-year high of 109.29 recorded in July.

The euro fell overnight to $0.9926 per 1 euro. This is the lowest level in 20 years since 2002.

This phenomenon is interpreted as being due to Russia's announcement to halt natural gas supply to Europe through the Nord Stream 1 pipeline from the end of this month, followed by a heatwave hitting Europe, which is putting pressure on energy supply.

The won/dollar exchange rate also closed at 1,345.5 won, up 5.7 won in the Seoul foreign exchange market, marking the highest level in about 13 years and 4 months since April 28, 2009 (closing price basis 1,356.80 won) during the global financial crisis.