Euro Falls to 20-Year Low Against USD

CNBC: The euro fell to its lowest level in two decades on Tuesday as fears of a recession in the euro zone ramped up, with gas prices soaring and the Ukraine war showing no signs of abating. The euro shed around 1.3% for the session to hit $1.029 by mid-afternoon in Europe, having earlier been as low as $1.028. Euro zone inflation hit a record 8.6% in June, prompting the European Central Bank to give markets advance notice of its intention to hike interest rates for the first time in 11 years at its July meeting (CNBC). 

New York Times: As the eurozone’s economic outlook darkens, investors are concerned that the E.C.B. has moved too late, and may not have time to raise rates for very long before a weaker economy forces it to change course. There are growing predictions that the eurozone economy could slip into recession, especially if energy supplies continue to be disrupted. The Federal Reserve is expected to remain more aggressive in raising rates, which would make holding assets denominated in dollars more attractive than ones in euros, on top of the worries about the prospects for the eurozone economy (New York Times).