March 30, 2023

Dubai Week

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The euro fell below $ 1.06 for the first time in five years

The euro fell below $ 1.06 for the first time in five years

LONDON (Reuters) – The euro fell below $ 1.06 for the first time in five years on Wednesday against broader dollars amid concerns over energy security and sluggish growth in China and Europe. The euro fell to a five-year low of $ 1.05890 after Russian energy company Gazprom cut off gas supplies to Poland and Bulgaria. In recent trading, the euro fell 0.16 percent to close at $ 1.0616 by 08:00 GMT. The European currency, which has fallen more than four percent so far this month due to uncertainty over the war in Ukraine and the closure of the fight against Covit-19 in China, is set to record its worst monthly loss in more than seven years. It has led investors to shed the euro in support of the dollar, making it a safe haven. Data also show that consumer confidence in France, the second-largest economy in the eurozone, fell sharply in April. The dollar index, which measures the performance of the US currency against a basket of six rival currencies, rose 0.3 percent to 102.6 after touching its highest level since the early days of the epidemic. The dollar supported investor challenges to raise interest rates in the United States faster than other major economies. The Chinese yuan took its breath after hitting a 13-month low of 6.5547 against the dollar on Monday. Data also show that Chinese industrial profits grew at a faster pace in March. The British pound hit a new 21-month low of $ 1,2543. The British currency fell more than 2 percent against the dollar this week as data on retail sales revisited interest rate expectations in the country. Commodity-related currencies were also sold in support of the US dollar, a safe haven, which hit a low of $ 0.6551 against the New Zealand dollar in January. The Norwegian krone hit an all-time low of 9.2200 against the dollar after November 2020. The strength of the dollar also weighed on the Japanese yen, which gained some ground, falling 0.7 percent to 127.93 against the dollar.

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