Mr. Asheesh Chanda, Founder & CEO, Kristal.AI on depreciation of Euro against USD

The value of Euro depreciated against US dollars by almost 12% for the first time. This has had multiple consequences on imports and exports, weakened the purchasing power, and drastic global indices movements. It is a period of massive changes in the macro economy which in turn demands critical and wise investment decisions from investors.

"It is a clear sign that global investors are choosing the safety of US markets over the recession risks of the EU. The impending threat of Russia cutting off gas supplies in winter coupled with the slow intervention by the ECB to control inflation, means that the recession in the EU looks imminent. Hence investors are selling Euros and buying dollars. It also reinforces the importance of USD as the safest currency during times of uncertainty. As an Indian investor, one would be well advised to dollarize their investments as even rupee is expected to decline further this year."

Source : Equity Bulls

Keywords

USD Euro Depreciation