Euro on route to parity against the US Dollar as selling pressure continues

Euro extends losses vs. the dollar, trading under $1.01.

On Friday, the euro continued to fall against the dollar, hitting a low of $1.00719, the lowest level in 20 years.

Rising inflation and recessionary risks in the Eurozone and the US have been the main causes of investors’ growing concerns.

In response to the surge in consumer prices, the Federal Reserve and the European Central Bank have accelerated the rate of interest rate hikes.

The euro tumbled 0.61% against the dollar at 10:30 am GMT to sell for 1.00719, hovering around a 20-year low. The euro has fallen more than 11% against the greenback over the last six months and 14.75% year-on-year.

Meanwhile, the British pound is also on course for its biggest decline since Brexit. Sterling has fallen more than 10% versus the dollar, weakened not only by a strong US currency but also by fears of a UK economic recession, rising inflation, and increased uncertainty about the ramifications of Brexit.

The pound against the dollar at 10:30 GMT is $1.1996.

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