Euro falls below parity with dollar over expectations of hawkish Fed

By Aysu Bicer

ANKARA (AA) - The euro fell below dollar parity on Monday for the first time since mid-July amid expectations that the US Fed will continue quantitative tightening as it prioritizes the fight against inflation.

In morning London trade, the European single currency fell briefly to $0.9990 as concerns about the global economic outlook caused investors to turn to the dollar with their safe-haven purchases.

In the last four weeks, the EUR/USD rate lost 2.06%. Over the last 12 months, it fell 14.78%.

As investors in global markets gauge signals from economic indicators, they will also follow the Fed’s annual symposium in Jackson Hole in the US state of Missouri later this week.

Market observers expect Fed Governor Jerome Powell to make a hawkish speech this Friday stressing the continuation of interest rate hikes to stem inflation.