Lowest level in 20 years
Euro in free fall due to gas crisis
The euro is still under pressure on the financial markets in view of Europe’s gas crisis. On Monday morning, the common currency fell as low as $0.9881, its lowest level in almost 20 years.
The euro has fallen to its lowest level against the dollar in 20 years. (archive image)
Investors are fleeing the euro in droves. As a result, the euro falls and falls, especially against the dollar. Because it is becoming increasingly clear that Europe is facing a hard winter. The gas storage tanks are now well filled. However, that will not be enough to supply Europe with enough electricity and heating energy. It needs forced gas from other sources, should Russia actually turn off the gas tap.
The gas crisis was particularly aggravated by the interruption in deliveries through the Nord Stream 1 pipeline, which was supposed to deliver Russian gas to Germany through the Baltic Sea. Russia justifies the interruption with technical difficulties and maintenance work. Experts always use this as an excuse to increase the pressure on Germany and its government. The gas price shot up at times by 30 percent on the spot market.
Because of the crisis, the dollar is increasingly becoming the global safe haven currency. The euro has fallen to the $0.9881 level. The last time a euro cost less was at the end of 2002. The euro also weakened against the franc over the weekend. Because the franc is also considered a safe haven in times of crisis. The euro is currently trading at 0.9716 francs, around half a centime lower than on Friday evening.
Not only the euro falls, but also the stock exchanges. The Dax collapsed on Monday morning, and the leading Swiss index also fell by more than 1.7 percent. Fear of a crisis comparable to the collapse of Lehman Brothers is currently making the rounds on the markets. The end of the US investment bank in 2008 is considered the high point of the global financial crisis. Then the stock markets around the world crashed. (SDA/koh)