Euro drops below parity with dollar after US inflation hits 9.1%

The euro has dropped below parity against the dollar the first time in almost two decades after news that US inflation reached 9.1% in June.

The figures will place further pressure on the Federal Reserve to hike interest rates by 75 basis points later this month, as raising interest rates is one of the tools used by central banks to fight inflation.

Mark Gibson

Graduates in Northwestern University, Evanston, Illinois 1990. Move to Los Angeles California in 2004. Specialized in Internet journalism.

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