Andrew
The euro hovered a whisker above parity to the dollar on Wednesday, with traders wary of the single currency being forced to levels unseen for decades if U.S. inflation data, due to be released later in the global day, shows a sky-high reading.
The greenback was firm in Asia trade, and neither the New Zealand dollar or South Korea’s won drew much support from the expected 50-basis point increases in interest rates by their central banks.
The euro languished at $1.0036. It is down nearly 12 percent this year and fell to a 20-year low on Tuesday as the war in Ukraine has triggered an energy crisis that has hurt the continent’s growth outlook.
It dropped as low as $1.00005 on the most widely used Electronic Broking Services’ dealing platform and touched $1 on Reuters dealing overnight.
Analysts say it could fall further if fast-rising U.S. consumer prices keep investors betting on U.S. rate rises. – Reuters
Online Reporter