Euro slumps to two-decade low as recession fears mount
Swathes of currencies were under pressure
The euro slumped to a two-decade low on Tuesday as the latest surge in European gas prices added to worries about a recession, while there was no stopping the dollar as U.S. Treasury yields staged a rebound, Qazet.az reports.
Swathes of currencies were under pressure. The euro's 1% drop took it to its weakest since the end of 2002. Japan's yen was near 24-year lows again, while Norway's crown tumbled 1.2% as gas workers went on strike.
MUFG's head of global markets research, Derek Halpenny, said the risks of Europe backsliding into a recession looked to be growing after another big 17% jump in natural gas prices in both Europe and in Britain.
Concerns about how the European Central Bank will react were gnawing at sentiment after German Bundesbank chief Joachim Nagel had hit out at the ECB's plans to try and shield highly indebted countries from surging borrowing rates.