Euro swings to 20-year low against US dollar

The euro fell to a 20-year low against the US dollar today, Aug. 23, amid renewed fears that the energy crisis will lead to persistently high inflation in the eurozone, making a recession almost certain.

Data released today showed economic activity in Europe tumbled for the second month in a row, after soaring inflation rates slashed demand.

At 1:49 pm Makkah time, the euro shed 0.14% to $0.9929, slipping below the level of parity against the US dollar.

Morgan Stanley expects the euro to slump to $0.97 during the current quarter, while Nomura International aims to bring the European currency to $0.975 by September-end. Afterwards, the market could head to $0.95 or lower, Bloomberg reported.

Market focus now turns to this week's Jackson Hole meeting, where US Federal Reserve Chairman Jerome Powell is set to confirm the central bank's commitment to combating inflation.