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Dollar Jumps; Euro Breaks Parity, Falls Below $1 After US Consumer Prices Surge

Reuters

Last Updated: July 13, 2022, 19:23 IST

The euro has borne the brunt of dollar strength, falling to the level which is the weakest since December 2002.

The euro has borne the brunt of dollar strength, falling to the level which is the weakest since December 2002.

Euro plunges to $0.9998 against the US dollar, breaking below the $1 level for the first time since December 2002, before bouncing back to last trade at $1.0024

The dollar surged to a 20-year high against a basket of currencies and the euro broke below parity against the greenback after data on Wednesday showed US consumer price inflation surged to a 40-1/2-year high in June.

The consumer price index increased 1.3% last month as gasoline and food costs remained elevated, more than the 1.1% expected by economists polled by Reuters.

“This morning’s number is staggeringly high. It’s higher than expected and shows that inflation is going quickly in the wrong direction," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

The euro plunged to $0.9998 against the greenback, breaking below the $1 level for the first time since Dec. 2002, before bouncing back to last trade at $1.0024.

The dollar index reached 108.59, the highest since Oct. 2002, from around 107.9 before the data released.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
first published:July 13, 2022, 19:12 IST
last updated:July 13, 2022, 19:23 IST
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