How Low Can the Euro Go?

The euro is hurtling toward parity with the U.S. dollar for the first time since its early years of existence. Investors are betting it could get a lot worse for the common currency.

The descent adds to the eurozone’s inflation woes and complicates the European Central Bank’s plans for unwinding its pandemic stimulus. It also carries big implications for U.S. investors and businesses with operations on the continent, as the value of their overseas earnings slides in dollar terms.