exchange rate fell euro to a new low in two decades with the beginning of the impact dollar Fresh and the possibility of a difficult winter in Region. The pullback is just the beginning of an even more severe drop in the currency, according to strategists.
The common currency fell as much as 1.1% to $0.9928 on Monday, below its two-decade low of 0.9952 hit last July, as it turned away from a brief relief program that pushed the euro to around $1.03 earlier this month.
On Monday, the European currency traded at levels last seen in 2002, a few years following the currency saw the light. The Bloomberg Dollar Index in the spot market rose 0.7% to its highest level since July 15th.
Bank expectsMorgan Stanley“The euro will fall to $0.97 this quarter, a level not seen since the early 2000s.
Nomura International targets $0.975 by the end of next September, and as a result, the market may look for a level of $0.95 or less, as pressures increase on supply energy of the risk of power outages and is likely to raise the euro imports.