The euro is on the brink of parity with the dollar as investors fear that an energy crisis will plunge the region’s economy into recession.
The single currency fell to just $1.0003 on Tuesday morning, pushed lower by worries that the scheduled shutdown of the Nord Stream 1 pipeline – which transports natural gas from Russia to Europe – for maintenance could be made permanent.
Russia’s invasion of Ukraine in late February has triggered fears over Europe’s energy supply and hurt the region’s economies, pushing the euro 12% lower against the US dollar so far this year.
The euro is also being hit by expectations of further aggressive interest rate rises by the US Federal Reserve, which are driving the dollar higher. » | Julia Kollewe and Graeme Wearden | Tuesday, July 12, 2022
Business Live: Euro falls to brink of parity with dollar over fears Russia will cut off gas supplies »
