The euro slumped to a fresh two-decade low of 0.9900 against the US dollar on Tuesday as the latest surge in European gas prices added to worries about a recession. European gas prices break the $3,000 mark this week after Gazprom’s announcement of unscheduled maintenance at the Nord Stream 1 pipeline at the end of this month.
The EURO dropped more than 13% this year. The strong bearish sentiment was also fueled by the resurgence in the US dollar. The dollar rally comes after the renewed concerns about aggressive interest rate hikes. On Tuesday, the currency pair slightly recovered in early New York trading after the release of disappointing US PMI and new home sales data. EURO was initially under pressure on Tuesday following the release of mixed PMI data from the Euro Area, Germany, and France.
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