The Euro continued to fall on Wednesday, hitting a new 20-year low below US$1.0200 and is on track to reach the cash level (1.0000) soon on growing concerns that Russia may cut off supplies of gas to Europe, contributing to the entry of the Eurozone into recession, which would make it difficult for the ECB to carry out its planned policy of raising interest rates to control record inflation.
The single European currency fell below $1.0200 to $1.0170 on Wednesday, a new low for the euro since December 2002.
Euro/dollar chart
The US dollar rose on Wednesday to a new 20-year high against the other leading currencies.
At the same time, annual inflation in the Eurozone hit a record high of 8.6% in June.