The European currency fell to record lows amid the energy crisis, which is intensifying after the shutdown of Nord Stream 1.
The exchange rate of the euro against the dollar fell to the lowest in 20 years and reached $0.99 (-0.5%) against the backdrop of the shutdown of Nord Stream-1, Reuters wrote on Monday, September 5.
The European currency is falling because of the energy crisis.
This week, the European Central Bank (ECB) will consider how much to raise interest rates. “Markets are close to fully appreciating a 75bp increase,” experts said.
The central banks of Canada and Australia are also expected to raise interest rates, while Federal Reserve Chairman Jerome Powell will announce additional measures to combat inflation.
The dollar stood at 140.33 yen, just short of a 24-year high of 140.80. The pound sterling traded at $1.1468, a level last seen in March 2020 at the start of the pandemic. A fall to $1.1412/$13 would return to 1985 values.
“We now expect euro/dollar and pound/dollar to reach 0.90 and 1.05 respectively next year as the economic downturn and trade shocks that hit the region take their toll,” Jonas said. Goltermann, senior economist at Capital Economics.
Recall that after a three-day break for maintenance, gas pumping through Nord Stream did not resume on September 3, as originally planned. Gazprom cited an oil leak at the Portovaya compressor station as the reason.
Siemens Energy said that the oil leak cannot serve as a technical reason to terminate the operation of the Nord Stream 1 gas pipeline.
It should be noted that on September 2, the price of gas in Europe fell below $1,900. And now the price immediately jumped 30%, surpassing $2,800.
Source: korrespondent
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