The euro fell to parity with the dollar and fell to its lowest level in 20 years as investors fear the energy crisis will plunge the region’s economy into recession.
The single currency fell to just $1,003 this morning on concerns that the planned shutdown of the Nord Stream 1 gas pipeline, which brings natural gas from Russia to Europe, for maintenance could become permanent.
Russia’s war with Ukraine in late February raised concerns about Europe’s energy supplies and hurt the region’s economy, sending the euro down 12 percent against the US dollar this year.
On Monday, Russian oil giant Gazprom began periodic maintenance on the Nord Stream 1 gas pipeline, which carries a large amount of Russian gas that still goes to Germany and several other Western European countries. Repair work will continue for ten days.
There are fears that Gazprom may refrain from resuming gas transportation, given the deterioration of relations between Russia and the West to the lowest level in recent years as a result of the Russian invasion of Ukraine.
On Sunday, French Economy Minister Bruno Le Maire urged “prepare for battle” to deal with the possibility of a total supply cut, explaining that it was “the most likely possibility.”
Source: El Iktisad
