Euro drops below $1.01, first time since 2002

The euro’s decline accelerated on Friday and the single European currency fell below $1.01 for the first time since the end of 2002, weighed down by the anxiety generated by the old continent’s economy.

By 08:35 GMT, the euro was down 0.49% at $1.0110, Having fallen to 1.0072 a little earlier, Equivalence approaches.

Derek Halpini, an analyst at MUFG estimated: “Natural gas will push the euro below par, whatever the reaction of the European Central Bank (ECB)”.

because of problems with Russian exports, gas prices soar Thursday reached levels not seen since March and the invasion of Ukraine

The possibility of a gas shortage in the Eurozone is driving traders away from the single European currency.

To avoid a blow to economic activity that this may represent, the European Central Bank is currently suspicious raise your interest rates very quickly, Although inflation.

In addition, the risk of “interest rate divergence” between eurozone countries is prompting the European Central Bank to exercise caution, said Matthew Ryan, analyst at Iberi.

“The euro will continue to approach parity unless the European Central Bank adopts a shock measure, such as a 0.50 percentage point rise” in its key interest rate, estimates Ipek Ozkardskaya, an analyst at SwissQuote.

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Myrtle Frost

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