Euro drops to 20-year low, approaches parity with dollar

The euro slid to a 20-year low on Monday on concerns that an energy crisis will tip the region into a recession.

The biggest pipeline carrying Russian gas to Germany,  began annual maintenance on Monday, with flows expected to stop for 10 days.

Governments, markets and companies are worried the shutdown might be extended because of the war in Ukraine.

The euro tumbled as low as $1.0051 against the US dollar, the weakest since 2002. The dollar index reached 108.19, the highest since  2002. 

The US currency has gained on expectations that the Fed will continue to aggressively raise rates as it tackles soaring inflation.

The Australian dollar was the worst performer on the day, falling to a two-year low on global growth fears.

The Aussie fell as low as $0.6716, the weakest since June 2020.