Euro to dollar

The U.S. dollar rose across the board on Monday, driving the euro back below parity, as investors shied away from riskier assets amid growing fears that ...

If that gives way, then we could see significant further losses, especially with the ECB's window to tighten policy rapidly slamming shut." [read more](/markets/europe/china-cuts-lending-benchmarks-arrest-economic-slowdown-2022-08-22/) The euro was last down 1.1% at $0.99345 . NEW YORK, Aug 22 (Reuters) - The U.S. Investors worry that the halt could exacerbate an energy crisis that has weighed on the common currency in recent months. Register now for FREE unlimited access to Reuters.com

Common currency breaks below parity again amid grim backdrop · Morgan Stanley forecasts euro will slide to $0.97 this quarter.

The Bloomberg Dollar Spot Index rose 0.7% to its highest level since July 15. The currency was trading Monday at levels last seen in 2002, just a few years after the currency came into existence. The drop is just the beginning of a deeper descent for the currency, according to strategists.

SINGAPORE (Reuters) - The dollar held firm on Tuesday on safe haven flows, while the euro languished around a two-decade low as Europe confronts energy supply ...

dollar index stood firm at 108.9, attempting to breach a two-decade high of 109.29 hit in July. "That's possibly in anticipation that Chair (Jerome)Powell's speech on Friday is likely to reiterate hawkish messaging." Against a basket of currencies, in which the euro is the most heavily weighted, the U.S. Elsewhere in Asia, the dollar traded at 6.8652 against the offshore yuan, not far from a nearly two-year high of 6.8752 hit on Monday. Investors are also waiting on minutes of the European Central Bank's (ECB) last policy meeting on Thursday that are likely to sound hawkish even as the continent faces a downturn in growth. The pound was also dragged to a new 2.5-year low overnight, and hobbled near that level at $1.17715 in Asia trade.

The euro has dropped below the dollar's value for the 2nd time in 2022, coming under pressure before the Federal Reserve's Jackson Hole conference.

Inflation in the US was running at a hot rate of 8.5% in July even as it cooled from 9.1% in June, a 41-year high. The "impact so far has been to spark a very sharp rise in global bond yields which, along with last week's soft Chinese data, send global equities into a bit of a funk and gave the dollar a big boost. All that talk of the dollar having peaked is looking a bit jaded." European officials have been working on stockpiling gas and managing soaring energy prices as the winter season approaches. The composite PMI is expected to show a deepening contraction. The decline took place just days before the Federal Reserve was expected to stress its aim of clamping down on high inflation at its symposium in Jackson Hole, Wyoming.

The euro has dropped below parity with the U.S. dollar on Monday. According to Reuters, investors fear that "interest-rate hikes in the United States and ...

Investors worry that the halt could exacerbate an energy crisis that has weighed on the common currency in recent months. From the report: Against a basket of currencies, the dollar rose 0.8% to a more than five-week high of 109.02 , not far from the two-decade peak of 109.29 touched in mid-July. The greenback has found support in recent sessions as several Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed's Jackson Hole, Wyoming, symposium this week. According to Reuters, investors fear that "interest-rate hikes in the United States and Europe, aimed at curbing inflation, would weaken the global economy." The euro fell following Russia's announcement late on Friday of a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month. [dropped below parity with the U.S.

The euro was exchanging around 15.00 GMT at 0.9964 dollars, compared to 1.0045 dollars in the last hours of European currency market trading last Friday. The ...

According to Bundesbank experts in their August monthly report, the contraction could even lead to a recession in the first quarter of 2023. The European Central Bank (ECB) set the euro’s reference exchange rate at 1.0001 dollars. Expectations that interest rates in the United States will rise more than in the Eurozone continued to weigh on the community currency, in whose price the effects of uncertainty about the future of Russian gas supplies were also felt.

The euro fell to a two-decade low of 0.9903 against the U.S. dollar and strategists predict further euro depreciation in the coming months.

[missed GDP expectations](https://www.cnbc.com/2022/07/15/china-q2-gdp.html) with growth of just 0.4% in the second quarter. dollar and the euro, as well as a further weakening of the single currency. dollar](https://www.cnbc.com/quotes/.DXY) Tuesday morning, with analysts predicting the single currency will continue to slide. Longer-term target of between $0.80 to $0.75 in the coming months," Van den Akker said. "[The dollar] broke below the 103.60 support level. [made similar predictions](https://www.cnbc.com/video/2022/08/18/euro-to-usd-rate-to-drop-to-between-0-point-75-and-0-point-80-in-coming-months-ing-analyst-says.html) on CNBC's "Squawk Box Europe" last week, suggesting a widening in the interest rate differential between the U.S. [the China slowdown](https://www.cnbc.com/2022/08/22/chinas-alibaba-and-tencent-focus-on-cost-cuts-amid-slowing-growth.html) which obviously hits Europe with a much higher magnitude when compared to the impact in the States," he said. And Europe should be able to recover from those "woes," according to the strategist. [conflict in Ukraine](https://www.cnbc.com/2022/08/22/russia-ukraine-live-updates.html) and [mounting inflation](https://www.cnbc.com/2022/07/13/inflation-rose-9point1percent-in-june-even-more-than-expected-as-price-pressures-intensify.html) across both regions. [euro](https://www.cnbc.com/quotes/EUR=) traded at a two-decade low of 0.9903 against the [U.S. - The euro fell to a two-decade low of 0.9903 against the U.S. [Europe Markets](https://www.cnbc.com/europe-markets/)

SINGAPORE: The dollar held firm on Tuesday on safe haven flows, while the euro languished around a two-decade low as investors braced for a hard winter in ...

Yields on the two-year Treasury note were up around 5 bps to 3.3140% as investors remained on inflation and Fed watch mode. dollar index stood firm at 108.9, attempting to breach a two-decade high of 109.29 hit in July. "That’s possibly in anticipation that Chair (Jerome)Powell’s speech on Friday is likely to reiterate hawkish messaging." Elsewhere in Asia, the dollar hit 6.8711 against the offshore yuan, close to a nearly two-year high of 6.8752 hit on Monday. Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

Annual inflation in the euro area was 8.9 per cent in July 2022, up from 8.6 per cent in June 2022.

This is because euro is the currency that is getting battered by traders as they believe that the eurozone is going to face a lot more difficult time and recession is not avoidable here,” said Mr Aslam. “Given the fact the euro/dollar is sitting at a level that we have not seen for over a decade, it seems like that traders do not have the stomach to take the other side of the trade, and that is buying the Euro. Last month, CPI inflation struck a 40-year high of 10.1 per cent, with the Bank of England projecting a further rise to above 13 per cent in October before a decline. [ inflation](https://www.thenationalnews.com/tags/inflation/) will almost double to 18.6 per cent in January 2023 — its highest rate in half a century — as Europe’s [energy](https://www.thenationalnews.com/tags/energy/) crisis leads to [British bills becoming prohibitive](https://www.thenationalnews.com/business/energy/2022/08/04/uk-home-energy-bills-set-to-leap-in-october-and-january/) for many consumers, [Citi](https://www.thenationalnews.com/business/energy/2022/08/22/uk-inflation-forecast-to-double-to-186-as-europes-energy-crisis-spirals/) economists have projected. “This is the reason that we saw the euro/dollar dropping to its fresh lowest of this year and below parity. “Most believe that it is a losing trade, and this has left the Euro in a free fall.” The British pound is down about 13 per cent against the dollar since the start of the year. In the euro area, annual inflation was 8.9 per cent in July 2022, up from 8.6 per cent in June 2022 and 8.1 per cent in May 2022, according to Eurostat, the statistical office of the EU. The US central bank raised interest rates by 75 basis points in its past two meetings and is expected to do so again when it meets from September 20 to September 21. Naeem Aslam, chief market analyst at Avatrade, said traders are betting that the US Federal Reserve Bank is going to stay on a hawkish monetary policy path, with interest rates in the US expected to continue moving higher, which the European Central Bank is unlikely to match due to the slowing economic activity in the eurozone. The euro previously fell to below parity with the greenback in early July and has dropped about 12.8 per cent against the dollar this year as households and businesses are squeezed by record inflation. The gauge for Europe's biggest economy fell to 47.6 in August from July's final reading of 48.1, the fastest fall in business activity since June 2020, reflecting a deepening decline in service sector activity and a continued reduction in manufacturing production volumes.

The euro has fallen below parity with the dollar, diving to its lowest level in 20 years and ending a one-to-one exchange rate with the U.S. currency.

A weaker euro can be a headache for the European Central Bank because it can mean higher prices for imported goods, particularly oil, which is priced in dollars. A key worry for the U.S. If euro earnings remain in Europe to cover costs there, the exchange rate becomes less of an issue. Fears that [the war in Ukraine](https://apnews.com/hub/russia-ukraine) will lead to a [loss of Russian oil on global markets](https://apnews.com/article/russia-ukraine-global-trade-prices-76b1b9a40a1b8de40b8d14ada4102a92) have pushed oil prices higher. They also have raised fears about governments needing to [ration natural gas to industries](https://apnews.com/article/inflation-russia-ukraine-covid-health-923304026448bda234d6890592f55463) like steel, glassmaking and agriculture if Russia further reduces or shuts off the gas taps completely. The U.S. [Europe is far more dependent on Russian oil and natural gas](https://apnews.com/article/russia-ukraine-africa-government-and-politics-middle-east-61d000b572a2a5a078ca3372ea9a6034) than the U.S. As the Fed raises interest rates, the rates on interest-bearing investments tend to rise as well. That’s because the U.S. 1, 1999, but then began a long slide, falling through the $1 mark in February 2000 and hitting a record low of 82.30 cents in October 2000. And [Russia has been cutting back natural gas supplies](https://apnews.com/article/russia-ukraine-france-italy-european-union-39f69052043b910e6880086da9528bf3) to the European Union, which EU leaders described as retaliation for sanctions and weapons deliveries to Ukraine. While constantly changing, the euro has dropped just below a value of $1 this week.