The euro sank to its lowest level against the dollar since June 2020 as the unprecedented security crisis in Europe with the Russian invasion of Ukraine led to a jump in safe havens.
The common European currency fell as much as 1.8% to $ 1.1106, and reached a seven-year low against the Swiss franc, falling 1%. The fall of the currencies in Europe thus fueled the rise of the American currency.
The euro thus lost the gains it had made after the “hawkish” shift suggested by the European Central Bank last month, due to persistent inflation.
“Investors believe that any worsening of the crisis will increase the risk of stagnant inflation, affecting the recovery in the eurozone,” said Valentin Marinov, head of forex strategy at Credit Agricole.
The cost of hedging against euro-dollar exchange rate volatility has risen to its highest level since December 2020.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
