Euro at Two-Decade Low Just Start of Drop, Strategists Say
- Common currency breaks below parity again amid grim backdrop
- Morgan Stanley forecasts euro will slide to $0.97 this quarter
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The euro fell to a new two-decade low as a resurgent dollar and the prospect of a difficult winter for the region begin to bite. The drop is just the beginning of a deeper descent for the currency, according to strategists.
The common currency fell as much as 1.1% to 0.9928 Monday, below the prior two-decade low of 0.9952 reached in July -- shifting away from a brief period of relief that propelled the euro to about $1.03 earlier this month. The currency was trading Monday at levels last seen in 2002, just a few years after the currency came into existence. The Bloomberg Dollar Spot Index rose 0.7% to its highest level since July 15.