Euro Tumbles to 20-Year Low, Putting Parity With Dollar in Sight
- Euro falls to the lowest since 2002 against the greenback
- Traders pare bets on ECB hikes on gloomy growth outlook
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The euro slid to the lowest level against the US dollar in two decades as investors grappled with the prospect of an energy crisis that risks tipping the region into a recession.
The common currency fell as much as 1.8% to $1.0235, its weakest level since December 2002, weighed down by the threat of gas shortages that could disrupt industrial activity across the region if Russia cuts off supplies. Money-market traders trimmed ECB tightening bets against the darkening backdrop, widening the interest-rate differential with the Federal Reserve.