The price of euro keeps falling below dollar price amid heightened fears of an energy crisis.
According to a report by the Archyde.com agency, this morning the euro fell below $0.99, hitting its lowest level since 2002.
This new low in 20 years comes following news that Russia interrupted the supply of gas through its main gas pipeline to Europe, which has accentuated fears of a energy crisis.
“Russia canceled on Saturday the deadline to resume gas flows through the Nord Stream pipeline, citing an oil leak from a turbine. This coincided with the announcement by the Group of Seven economy ministers to limit the price of Russian oil.
The price of the euro is increasingly correlated with the prices of the gas naturalbecause the price falls when the prices of the energy source rise.
The situation is complicated while Europa it is trying to divest itself of Russian supplies and build up reserves ahead of the cold winter months, but investors see the hit to its economy as huge.
In addition to this problem, this week investors are preparing for an upcoming meeting of the European Central Bank (ECB)3, which will take place on Thursday. According to the markets, there is an 80% chance that the ECB will raise its interest rate by 75 basis points.
“The ECB officials will want the euro, which has lost around 8% of its value in the last three months, stabilizes. That will fuel the desire to try to tame inflation by tightening monetary policy.”
For now, until the end of last week, the Central Reserve Bank (BCR) indicated that the euro was trading at S/ 3.87 in Peru, standing 20.53% below what it cost a year ago.
