Euro hits 20-year low against US dollar over recession fears | Business and Economy News

Rising fears of a recession within the eurozone push the euro to its lowest degree in opposition to the US greenback since 2002.

The European Union’s single foreign money has sunk to its lowest degree in opposition to the US greenback since 2002 as information pointed to a rising recession danger within the eurozone.

The euro additionally dived on Tuesday as buyers eyed aggressive rate of interest hikes by the US Federal Reserve in its combat in opposition to inflation, in distinction with the European Central Financial institution which plans extra modest will increase.

Simply earlier than 09:00 GMT, the shared eurozone unit tumbled to $1.0306, threatening a push in direction of US greenback parity for the primary time because the euro’s creation in 1999.

Financial development within the eurozone floundered in June, a key survey confirmed on Tuesday, hit by hovering inflation.

Company confidence

S&P International’s carefully watched month-to-month buying managers’ index (PMI), which measures company confidence, fell to 52.0 in June from 54.8 in Could.

The studying, which was a 16-month low, nevertheless, stays above the 50-point degree signalling enlargement.

“Rising fears of a recession are hammering the euro decrease, while the greenback is hovering on bets that the Fed will hold mountaineering charges aggressively to tame inflation,” Metropolis Index analyst Fiona Cincotta informed the AFP information company.

“At this time’s PMI information from Europe have highlighted the danger of slowing development on the finish of the second quarter and lift the prospect of a contraction in exercise within the coming months.”

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