The price of the euro fell, today, Wednesday, below the symbolic threshold of the US dollar, which has not been crossed since December 2002, affected by the bleak outlook for the European economy, and the possibility of a complete cut off Russian gas supplies.
Sharjah 24 – AFP:
The price of the euro fell, today, Wednesday, affected by the bleak outlook for the European economy, and the possibility of cutting off Russian gas supplies completely, below the symbolic threshold of the US dollar, which has not been exceeded since December 2002.
The euro was trading once morest 0.9998 dollars at around 12:45 GMT, in a precedent since the beginning of trading in the European currency, before recording a new rise, following official figures showed a rise in inflation in the United States last June, which reinforced expectations that the US Federal Reserve would follow a monetary policy. More stringent.
Fears are fueled more and more by the complete cessation of Russian gas exports to Europe, as the French government spoke at the end of last week regarding the possibility of cutting off supplies.
Analyst Jane Foley at Rabobank Financial Services explains, how far can the euro’s decline go? This likely depends on Russia’s desire to aggravate the economic war with Europe, pointing out that knowing the intentions of Russian President Vladimir Putin is not easy.
Given the weak growth in the eurozone, the European Central Bank can raise interest rates, but with difficulty, in order to combat inflation, which reached in June 5.8% in France and 7.6% in Germany, according to figures published Wednesday morning.
The European currency has lost nearly 12% of its value since the beginning of the year.
