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The euro fell as low as $1.0886, its lowest level since May 2020, after the Ukraine war and hit a new seven-year low against the Swiss franc as the Ukraine war ratchets up risk for the euro area economy.
Invesco CurrencyShares Euro Trust ETF (NYSEARCA:FXE) slides 1.4% in midmorning (NY time) trading and the iShares Core MSCI Europe ETF (NYSEARCA:IEUR) drops 4.2%.
In recent trading, the euro falls 1.4% against the greenback to $1.0910 and 1.2% against the Swiss franc to CHF 1.003.
Concern escalated overnight after reports that a Ukraine nuclear power plant caught fire after Russia attacked the facility, Europe’s largest nuclear power plant. Russia now controls the plant, according to Reuters.
The effects of rising energy and gas prices are expected to dim the European economic growth outlook. “Euro remains somewhat at the epicenter of risk aversion, Neil Jones, head of FX sales at Mizuho, told Reuters.