March 5, 2024

The euro currency symbol appears in the visitor center at the European Central Bank (ECB) building in Frankfurt, Germany.

Alex Krause | Bloomberg | Getty Images

On Tuesday, the euro fell to a two-decade low, shedding more than 1% to $1.0305.

It comes as fears of a recession grow in the eurozone, as gas prices soar and the Ukraine war shows no signs of abating.

Eurozone inflation hit a record 8.6% in June, prompting the European Central Bank to give markets advance notice of its intention to raise interest rates for the first time in 11 years at its July meeting.

However, growing fears of a recession may limit the central bank’s ability to tighten monetary policy. The July Sentix Economic Index Monday showed investor sentiment in the 19-country euro zone slumped to its lowest level since May 2020, signaling an “inevitable” recession.

The euro has lost more than 9% of its value against the dollar since the beginning of the year.

This is an evolving story and will be updated soon.

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