Euro hits a 20-year low against the US dollar

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By AP
The single European currency is worth less than one US dollar as of the monring of 5/9/22
The single European currency is worth less than one US dollar as of the monring of 5/9/22   -   Copyright  Virginia Mayo/AP2011

Another week and yet more pain for the euro. The single European currency was trading below 99 US cents this morning - it's lowest value in 20 years

It comes after Russia announced that the Nord Stream gas pipeline, which directly supplies Germany, would be shut indefinitely. Worries surround the EU economy - as gas and electricity prices look set to remain high, putting downward pressure on the Euro.

Officially the decision was due to a pipeline leak that the Russian state-owned company Gazprom found. However, the EU has said Moscow is "weponising" energy, due to the bloc’s support for Ukraine

Meanwhile, the US dollar is riding strong - as the American central bank, the Fed - tightens its monetary policy.

The European Central bank is now in a difficult position due to high inflation and a possible recession on the horizon. Analysts expect it to raise interest rates after a meeting on Thursday.