TOKYO, July 12 ―The euro hovered close to a 20-year low near parity to the dollar today amid concerns that an energy crisis could tip Europe into recession, while the US Federal Reserve continues to aggressively tighten policy to curb inflation.The dollar index ― which measures the greenback against six major peers, with the euro most heavily weighted ― was also little changed at 108.17, following its surge overnight to the highest since October 2002 at 108.26.
Euro weakness has been a big part of the dollar index's push higher, with the safe-haven US currency also supported by worries about growth elsewhere too, with China in particular implementing strict zero-Covid policies to contain fresh outbreaks. The dollar edged 0.14 per cent lower to ¥137.22 following yesterday's jump to a fresh 24-year high at 137.75.
This week sees a raft of US economic data that should provide a glimpse of the extent to which rate hikes thus far have cooled price pressures.