The results of the euro's decline to dollar parity

The euro fell to parity with the dollar on Tuesday for the first time in nearly 20 years. Here are some of the immediate consequences of the eurozone's currency depreciation. According to Eurostat, nearly half of all goods imported into the eurozone are invoiced in dollars, while less than 40% are invoiced in euros.

Oil and gas, for example, are traditionally priced in dollars, and their prices have risen in recent months as a result of Russia's war against Ukraine. This means that more euros are required to pay for the same amount of goods in dollars.

"Imported goods become less competitive, compete against each other and therefore become more expensive," which fuels inflation and erodes households' purchasing power, said Isabelle Mejean, professor at Sciences Po university.

One specific effect of the euro's fall against the dollar is that it will "dampen European tourism to the United States in particular," said  BNP Paribas economist, William De Vijlder. The impact of the euro's depreciation varies depending on how dependent a company is on foreign trade and energy.