Euro falls behind the dollar

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Against the dollar, the euro has fallen to a 20-year low.

On Monday, the euro dropped below parity with the US dollar for the second time in a little more than a month as investor concerns over a possible Eurozone recession grow.

Before cutting some of its losses, the euro fell as low as $0.9935. After climbing to about $1.03 at one point earlier this month, it is one of the lowest values in the last two decades. In February, the euro was trading at about $1.15.

“The Damoclean sword hanging over the European economy isn’t going away,” Societe Generale SA foreign exchange strategist Kit Juckes wrote in a note to clients reviewed by Bloomberg. “The euro is back under pressure at the end of summer, partly because the dollar is bid and partly because.

The euro has been steadily declining recently as worries about a recession in the Eurozone have grown along with increased skepticism about Russian energy supply. The euro and the dollar reached parity in July for the first time since 2002.

The euro might decline below $0.97 this quarter, a level not seen since the early 2000s, according to Morgan Stanley. By the end of September, Nomura International predicts it will drop to $0.975, at which point the market may be expecting it to break the $0.95 mark or even lower, as the strain on energy supplies increases the possibility of blackouts and will probably call for more energy imports into the Eurozone.

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