Euro Falls Below Parity With the Dollar

The euro has dropped below parity with the U.S. dollar on Monday. According to Reuters, investors fear that "interest-rate hikes in the United States and Europe, aimed at curbing inflation, would weaken the global economy." From the report: Against a basket of currencies, the dollar rose 0.8% to a more than five-week high of 109.02 , not far from the two-decade peak of 109.29 touched in mid-July. The greenback has found support in recent sessions as several Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed's Jackson Hole, Wyoming, symposium this week. The latest of these officials, Richmond Fed President Thomas Barkin, on Friday said the "urge" among central bankers was toward faster, front-loaded rate increases.

The euro fell following Russia's announcement late on Friday of a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month. Investors worry that the halt could exacerbate an energy crisis that has weighed on the common currency in recent months.

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