Euro drops below $1.01 for the first time in 20 years

The euro continues declining against the US dollar. On July 8, the European currency set a 20-year anti-record as it dropped below $1.01 for the first time since December 2002, Investing. com platform data indicates.

As of 11:03 a. m. Moscow time, the euro was trading at $1.0104 (minus 54 cents on relative to the level of the previous close of trading).

In early July, Deutsche Bank analysts predicted the euro would weaken further and decrease below parity with the dollar.

The European currency will continue to weaken due to investors' fears about an imminent recession in the eurozone against the background of the energy crisis, Deutsche Bank analysts believe. In addition, the currency remains under pressure from the inaction of the European Central Bank, which has not yet raised the base rate from zero.

On July 7, the British pound rose sharply against the US dollar — the currency strengthened by 0.55 percent to $1.1996 amid news of the resignation of Prime Minister Boris Johnson. A similar increase was recorded against the euro — up to 1.175 euros (plus 0.38 percent).