Euro falls to $1.0325, a two-decade low, as economic worries grow

5 Jul 2022 , 03:22 PM

On Tuesday, the euro hit a two-decade low versus the dollar as data revealed a severe slowdown in euro zone company growth in June and a new spike in natural gas prices rekindled concerns about the health of the eurozone economy.

The euro saw its worst decline versus the dollar since December 2002, falling 0.9 percent to $1.0325. Its value against the Swiss franc fell 0.7 percent to 0.9941 francs, the lowest level since 2015.

With the oil situation getting worse and threats to economic development rising noticeably, it will continue to be very difficult for the euro to rebound in any meaningful sense, according to Derek Halpenny, an analyst at MUFG.

The cost of the living problem has made consumers cautious, and survey data revealed that company growth within the eurozone slowed even further last month. Looking forward, evidence suggested that the area may even see a fall this quarter.

The dollar index increased by 0.8 percent to 105.98, a record high for the currency over the past two decades.

As the recent increase in natural gas prices shook investor confidence and countered the previous euphoria about indications of lessening U.S.-China trade tensions, stock markets elsewhere on Tuesday gave up early gains.