The price of the single European currency, “the euro,” fell, today, Friday, to less than the threshold of $1.01, for the first time since the end of 2002, affected by fears affecting the continent’s economy.
Sharjah 24 – AFP:
The euro’s decline accelerated, today, Friday, as the price of the European currency fell below the $1.01 threshold for the first time since the end of 2002, affected by fears affecting the continent’s economy.
At regarding eight o’clock GMT, the euro lost 0.55%, to reach its price of $ 1.0106, following declining to 1.0072, close to parity with the US currency.
Derek Halpini, an analyst at Mitsubishi UFJ Financial Holdings, explained that natural gas would make the euro sub-par, regardless of the European Central Bank’s reaction.
And gas prices in Europe reached their peak, on Thursday, since March and since the Russian war on Ukraine, driven by the disruption of Russian exports.
The prospect of a gas shortage in the eurozone has pushed investors away from the single currency.
In the face of the shock, which might affect economic activity, the European Central Bank is currently reluctant to raise interest rates too quickly, despite inflation.
Matthew Ryan, an analyst at Ibery, added that the more divergent borrowing rates are in the eurozone, the more cautious this will prompt the monetary institution.
Ipek Ozkardiskaya, an analyst at Swissquote, said the euro risks continuing to approach parity as long as the ECB does not resort to a shock measure, such as a 0.50 percentage point increase, at its next meeting.