A euro symbol is displayed in the visitor center of the European Central Bank (ECB) building in Frankfurt, Germany.
Alex Kraus | Bloomberg | Getty Images
The euro fell to its lowest level in two decades on Tuesday, slipping more than 1% to hit $1.0305.
It comes as fears of a eurozone recession intensify, gas prices soar and the war in Ukraine shows no sign of abating.
Eurozone inflation hit a record high of 8.6% in June, prompting the ECB to pre-announce to markets its intention to raise interest rates for the first time in 11 years during of its July meeting.
However, growing fears of a recession could limit the central bank’s ability to tighten monetary policy. The Sentix economic index for July showed on Monday that investor sentiment in the 19 eurozone countries plunged to its lowest level since May 2020, pointing to an “inevitable” recession.
The euro has lost more than 9% of its value against the dollar since the start of the year.
This is a developing story and will be updated shortly.