October 3, 2022

The euro fell below $0.99 after Russia halted gas supplies to Europe

10 and 5 euro notes.

Adrian Fillon | NoorPhoto | Good pictures

The euro fell below $0.99 for the first time in 20 years after Russia said. shut down its main gas supply pipeline to Europe indefinitely.

As European markets opened Monday, the euro slipped below the 0.99 level, trading at 0.9893 against the dollar after 8:00 a.m. London time (3:00 a.m. ET). Earlier in the morning, it fell to around $0.9881.

The dollar index, which measures the greenback against six major currencies, breached fresh two-decade highs as the British pound fell on fears about energy supplies and European economic growth.

On Friday, Russian energy supplier Gazprom said It will not resume natural gas supplies to Germany through the key Nord Stream 1 pipeline, blaming a malfunctioning turbine.

The announcement came hours after the Group of Seven economic powers Agreed on a plan A price cap should be imposed on Russian oil.

Ahead of the European Central Bank’s Thursday meeting, economists expect it to raise its benchmark deposit rate from 0 to 0.5% or 0.75%. A win for development.

“We expect Russia to respect the agreements they have, but if energy weaponization continues or increases in response to our decisions, I think the EU is ready to react,” EU Economic Commissioner Paolo Gentiloni said. , told CNBC week end.

Meanwhile, the pound traded at 1.1465 against the dollar as the UK prepared Find out who its new British Prime Minister is will be The new Prime Minister will be forced to reckon with the growing cost of living crisis Energy bills will go up.

Sterling fell 4.5% against the dollar in August, its worst month since Brexit An analyst forecast It will reach “new depths” of $1.05 by the middle of next year due to political and economic uncertainty.