Euro Hits 20-Year Low Amid Russia Gas Supply Cut...

Euro sculpture in front of the European Central Bank (ECB) in Frankfurt, Germany [Image source=Yonhap News]

The value of the euro against the dollar has fallen to its lowest level in 20 years.

As of 5:35 AM on the 5th (local time) (Greenwich Mean Time, GMT), the euro is trading at $0.9884, down 0.70% from the previous close.

This is the lowest level since December 2002.

The euro is weakening because Russia, which invaded Ukraine, has cut off Europe's gas supply in retaliation against Western sanctions.

Russian state-owned gas company Gazprom announced on the 2nd that it would indefinitely suspend operations of the major gas pipeline "Nord Stream 1" connecting Russia to Europe.

While the dollar is showing strong gains due to the Federal Reserve's tightening of monetary policy, the euro is weakening further amid concerns of a European economic recession.

In Europe, there are growing concerns about a recession along with pressure from rising gas prices.

European stock markets also sharply declined at the start of trading.

At the beginning of the trading day, France's CAC index fell 1.84% to 6054.12, Germany's DAX index dropped 2.56% to 12,716.31, and the UK's FTSE index was down 0.76% to 7225.56 compared to the previous trading day.