Euro falls to 20-year low against US dollar

The euro sunk below $0.99 on Monday, a 20-year-low, following the announcement last week that Russia would cut off gas deliveries to Germany via the Nord Stream pipeline.

Euro falls to 20-year low against US dollar
A $100-dollar bill is seen on top of Euro bills. The euro sunk below $0.99 on Monday, a 20-year-low.(Photo by DANIEL MUNOZ / AFP)

The euro fell 0.70 percent to 0.9884 dollars Monday at 0535 GMT, its lowest since December 2002.

The European currency has continued to weaken against the dollar since the start of the year, hammered by economic turbulence and uncertainties sparked by Russia’s invasion of Ukraine.

READ ALSO: What the dollar-euro exchange rate means for Americans in Europe

Russian gas giant Gazprom said Friday the Nord Stream pipeline due to reopen at the weekend would remain shut indefinitely.

It said it had discovered “oil leaks” in a turbine during a planned three-day maintenance operation, and that the pipeline would remain closed until it was repaired.

Resumption of deliveries via the pipeline which runs from near Saint Petersburg to Germany under the Baltic Sea, had been due to resume on Saturday.

Following the imposition of economic sanctions over the Kremlin’s invasion of Ukraine, Russia has reduced or halted supplies to different European nations, causing energy prices to soar.

The Kremlin has blamed the reduction of supplies via Nord Stream on European sanctions which it says have blocked the return of a Siemens turbine that had been undergoing repairs in Canada.

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Spanish government gets inflation boost ahead of vote

Spanish inflation slowed in May due mainly to lower fuel costs, preliminary data showed Tuesday, boosting the government ahead of an early general election in July.

Spanish government gets inflation boost ahead of vote

Inflation reached 3.2 percent year-on-year in May, down from 4.1 percent in April and 3.3 percent in March, according to INE, the national statistics institute.

The drop was mainly due to lower fuel prices and a more moderate rise in the price of food, INE said in a statement.

Core inflation, which strips out volatile food and energy prices was 6.1 percent year-on-year, down from the 6.6 percent recorded in April.

The latest inflation figures come a day after Prime Minister Pedro Sánchez unexpectedly called a snap election for July 23rd after his Socialist party suffered a drubbing in weekend local and regional polls.

READ ALSO: Spanish PM calls snap election for July 

His leftist coalition government has implemented a series of measures to bring down inflation in Spain which hit a record 10.8 percent in July.

It slashed the value-added tax on essential foods such as bread, milk, fruit and vegetables, and introduced free rail travel passes.