Euro falls to 20-year low against dollar

The euro fell below a 20-year low against the dollar for the first time in 20 years on September 5, as Russian energy giant Gazprom announced an indefinite halt to the Nord Stream 1 pipeline that transports gas to Europe and raised concerns about soaring energy prices. The euro fell below a 20-year low against the dollar for the first time in 20 years on September 5. The situation was not so positive for the British pound either.

Specifically, in the Asian market, the euro fell to 1 euro for 0.9880 USD, the lowest level since 2002. Meanwhile, the British pound also hit a 2.5-year low when it traded at 1.14445 USD per 1 pound. In contrast, the USD index, which measures the strength of the "greenback" against 6 other major currencies, jumped to a new 20-year high of 110.25. Accordingly, the exchange rate between the USD and the Japanese yen was at 140.38 yen per 1 USD. The Korean won also depreciated sharply against the USD, falling to its lowest level in more than 13 years for the first time, at 1,370 won per 1 USD.

In the European stock market, major indices also fell. Specifically, the DAX index on the Frankfurt Stock Exchange (Germany) fell 2.9%, the CAC 40 index on the Paris Stock Exchange (France) fell 2.1%, while the FTSE 100 index on the London Stock Exchange (UK) fell 0.9%. Analyst Naeem Aslam of AvaTrade commented that the stock markets in Europe are falling in the context of investors' concerns that the ongoing energy crisis in Europe could turn into a much more serious problem.

Since July 27, Gazprom has reduced gas supplies via the Nord Stream 1 pipeline to 20% of capacity, citing problems with repairs to Siemens turbines due to Canadian sanctions. On August 30, Gazprom announced the decision to suspend the Nord Stream 1 gas pipeline from 4:00 a.m. on August 31 to 4:00 a.m. on September 3 (Moscow time). However, on September 2, Gazprom announced that during the scheduled three-day maintenance, Gazprom discovered an oil leak in the main gas turbine at the Portovaya station near St. Petersburg. Accordingly, the turbine cannot operate safely until the leak is repaired, and Gazprom did not give any time frame for resuming gas supplies via the Nord Stream 1 pipeline.

According to Tin Tuc newspaper