The single European currency fell below the symbolic threshold of 1.10 dollars for one euro on Friday. The euro has indeed fallen sharply against other safe havens, as investors protect themselves from the consequences of Russia’s invasion of Ukraine.
A fall not seen since the Covid-19
The euro lost 0.81% to 1.0977 dollars around 12:40 p.m. in Paris, a level not seen since the first months of the Covid-19 pandemic, almost two years ago. An ounce of gold cost 1,773.13 euros, a level never seen before in this currency. “The exchanges are strongly influenced by the Russian attack on the largest nuclear power plant in Europe during the night”, explains Walid Koudmani, analyst at XTB.
A euro dependent on Russian exports
NATO on Friday condemned the “irresponsible” bombings by Russian forces against the power plant and new sanctions against Moscow are being considered. French Foreign Minister Jean-Yves Le Dria has called for “continuing the isolation” of Russia, and the European Union will discuss the possibility of imposing new sanctions against Moscow, in particular on Russian energy. , so far spared. The economy of the Euro zone is particularly dependent on Russian exports, so these words are not without consequences.
A euro that could still tumble
Among the other currencies affected by the conflict, the Russian currency fell again against the greenback (-2.2% to 111.95 rubles per dollar). The fall of the euro against the dollar could accelerate further if US employment data support the idea of a tightening of monetary policy by the US Federal Reserve (Fed), analysts warn.