FRANKFURT, Germany – The dollar's upward march is sending the euro currency to its lowest level in 14 years, easing the financial pressure on traveling Americans but giving European exporters a boost.
The euro, used by 19 countries, was down 0.3 percent at $1.0367 mid-afternoon Tuesday, drawing closer to parity with the dollar.
A major factor has been the prospect of more interest rate hikes by the U.S. Federal Reserve. Higher interest rates in the U.S. increase returns on dollar investments and spur demand for the currency.
European monetary authorities — the European Central Bank in Frankfurt — have widened the rate gap further by extending stimulus efforts aimed at pushing market rates down. The ECB's benchmark remains at a record low of zero compared with the Fed's range of 0.5-0.75 percent.