Euro slides under $1.01 as closes in on parity

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The euro neared parity with the dollar on Friday, as traders bet on the prospect of a eurozone recession caused by soaring inflation.

Around 0745 GMT, the euro slumped 0.9 percent to $1.0072, a fresh 20-year low.The European single currency is also suffering from the Federal Reserve hiking US interest rates more aggressively than the ECB, traders said.

The euro, which later recovered slightly to $1.0088, could face further pressure on Friday following the release of US jobs data, according to analysts. A strong reading could see the Federal Reserve stick to its path of aggressive rate tightening.

“A firm payroll… will reinforce the view that financial conditions are not tight enough, drive the dollar higher and send euro/dollar hurtling towards parity,” said independent analyst Stephen Innes.—APP

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