European Currencies Slide With FX Emerging as Go-To Bearish Bet
- Euro slides below parity against Swiss franc as war escalates
- Zloty, forint fall to record lows as investors assess fallout
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Traders are bracing for further weakness in European currencies as surging energy prices and the region’s proximity to the war in Ukraine darken the outlook for the continent.
The euro fell to its weakest level against the greenback since May 2020 and briefly dipped below parity against the Swiss franc for the first time since 2015, amid concerns the conflict on Europe’s eastern borders could escalate further. The pound fell to its weakest versus the dollar since December 2020, with investors fleeing into safer assets.