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In another turbulent day in the currency markets, the euro crashes to a new low in 20 years against the US dollar
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The euro crashed to a new 20-year low against the rampant US dollar yesterday.
On another turbulent day in the currency markets where the pound fell, the single currency fell close to $0.97 for the first time since 2002.
It came as Eurozone activity suffered its biggest contraction in 20 months. S&P Global’s Purchasing Managers Index, a key indicator of business conditions, was 48.2 from 48.9 in August.
Crash: On another turbulent day in foreign exchange markets where the pound fell, the unit currency fell close to $0.97 for the first time since 2002
That was below 50, which separates contraction and expansion, and the lowest level since January 2021. “The eurozone is in danger of a recession,” said Chris Williamson, economist at S&P Global.
“Germany is facing the worst of conditions, with the economy deteriorating at a pace not seen outside the pandemic since the global financial crisis.”
The report underlined the devastating impact the war in Ukraine has had on the global economy as energy prices soar.
There are fears that the eurozone, like the UK, is in recession. ‘Business has declined throughout the quarter,’ says Bert Colijn of ING. “This confirms our view that a recession could have already started.”