A first since the end of 2002: the euro falls below one dollar

The euro, weighed down by the gloomy outlook for the European economy and the possibility of a halt to Russian gas supplies, plunged briefly on Wednesday below a dollar, the first time it has fallen since December 2002.

Inflation is soaring in the U.S., opening the door to even tighter monetary policy across the Atlantic, pushing the euro down to $0.9998.

Given the modest growth in the euro zone, the European Central Bank (ECB) can hardly raise its rates to control inflation, which reached 5.8% in France and 7.6% in Germany in June, according to data released Wednesday morning.

This low return for euro holders is weighing on the European single currency, which has lost almost 12% of its value since the beginning of the year.

The greenback, for its part, is galvanized by its status as a safe-haven asset in a context of slowing activity, but also by the repeated rate hikes by the U.S. Central Bank.

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