Daily Times

Euro hits 20-year low against dollar

The euro dropped below $0.99 on Monday, marking a 20-year low, following Russia’s statement last week that it will halt gas supply to Germany via the Nord Stream pipeline.

The euro sank 0.70 percent to 0.9884 dollars on Monday at 5:35 GMT, its lowest level since December 2002.

Since the beginning of the year, the European currency has continued to depreciate against the U.S. dollar, as Russia’s invasion of Ukraine has stoked economic volatility and uncertainty.

On Friday, the Russian gas company Gazprom said that the Nord Stream pipeline, which had been scheduled to resume this weekend, will stay closed indefinitely. It stated that “oil leaks” were discovered in a turbine during a scheduled three-day maintenance operation, and that the pipeline would remain blocked until it was restored.

Euro hits 20-year low against dollar

Saturday was supposed to mark the resumption of pipeline deliveries that run from near Saint Petersburg to Germany beneath the Baltic Sea. As a result of economic sanctions imposed in response to the Kremlin’s invasion of Ukraine, Russia has cut or suspended supply to many European countries, forcing energy prices to skyrocket.

European sanctions, according to the Kremlin, have prevented the return of a Siemens turbine that was undergoing maintenance in Canada, resulting in a reduction of supplies via Nord Stream.