The euro fell below 99 US cents today, hitting its lowest level in 20 years. The suspension by Gazprom of gas supplies via Nord Stream 1 could further weaken the European currency.
The euro fell 0.7 percent on Monday. to 98.80 US cents, the lowest level since 2002. This is the result of the actions of Gazprom, which at the end of August suspended gas supplies via Nord Stream 1 to Germany, and then to other EU countries. The official reason was to be speaking work. Deliveries were supposed to resume on September 3, but the Russian company said that an oil leak had been discovered, so the gas pipeline was closed until further notice.
Gazprom will finish the euro?
The termination of Russian gas supplies via Nord Stream 1, according to Bloomberg, could further weaken the euro. This is pointed out in an interview by Rodrigo Catril, currency strategist at National Australia Bank Ltd, stressing that the full consequences of the suspension - indefinitely - of gas supplies from Russia are “still ahead.”
The agency draws attention to the actions of European countries in connection with the energy crisis. On Sunday, Germany announced a bailout plan worth about 65 billion euros to overcome the crisis associated with rising energy prices. Finland also announced a program to stabilize the energy market (its estimated cost is $10 billion). On Saturday, Sweden announced a $23 billion emergency allocation for utilities.
Bloomberg recalls that this week the European Central Bank will decide to raise interest rates. Experts expect a rate hike of 75 basis points. However, the decision on this matter, as the agency notes, is very difficult, since the head of the ECB, Christine Lagarde, and her colleagues are dealing with double problems - high inflation and an impending recession.
Source: Wprost
