Hard to believe even a few weeks ago, but now pros are talking about how the weakening euro could fall so low it could trade at parity with the dollar—or even lower.
The euro Wednesday was down about a half percent to $1.18, a nine-year low, after euro zone consumer prices fell on an annual basis for the first time since 2009. That fueled expectations that the European Central Bank will soon launch a quantitative easing, or bond-buying program. The common currency has lost 2.4 percent since the new year began, amid expectations of QE.
The last time the euro was trading at $1 or lower was in November 2002. It had sunk below the 1-for-1 level in the first year of its life, in late 1999, and traded as low as 84 U.S. cents in 2000. But in recent years, it has held above. For most of 2014, the euro was above $1.30.
But $1 is no longer unthinkable.