Sharjah24 - Reuters: The euro hovered a whisker above parity on the dollar on Wednesday ahead of U.S. inflation data, with traders wary a sky-high reading could force it to lows not seen in decades.
The greenback was firm in Asia trade, with 50 basis point rate hikes in New Zealand and South Korea that came in as expected failing to offer much support to the kiwi or won.
The euro languished at $1.0036. It is down nearly 12% this year and fell to a 20-year low on Tuesday as the war in Ukraine has triggered an energy crisis that has hurt the continent's growth outlook. It dropped as low as $1.00005 on the most widely used Electronic Broking Services' dealing platform and touched $1 on Reuters dealing overnight.
Analysts say it could fall further if fast-rising U.S. consumer prices keep investors betting on U.S. rate rises.
Economists forecast headline U.S. inflation accelerated to 8.8% year-on-year in June, a 40-year high, which is likely to reinforce expectations of interest rate hikes and help the dollar.
For an optimal experience, please
