The euro has fallen below the dollar for the first time in nearly 20 years as the war in Ukraine pushes the single currency down

A single euro bought $0.99 on the foreign exchange market today, down by 0.4 per cent in the day’s trading.

Recession fears are creeping closer now that Russia may restrict Europe’s supplies of energy

The European Central Bank has lagged other central banks in raising rates, further weakening the euro.

A weakening currency will make imports more expensive for eurozone countries, especially goods priced in dollars such as crude oil.

This follows US inflation breaching 9 percent for the first time in more than 40 years

It’s leading to fears of a recession in the world’s biggest economy and speculation the Federal Reserve will lift interest rates even further.

President Joe Biden is downplaying the huge increase in consumer prices as “out of date” because of the sharp drop in petrol prices in the US since June.

It comes just four months from the crucial midterm elections.

The inflation shock sent stocks lower on Wall Street, intensifying debate on the next steps by the Federal Reserve to tame prices.

US inflation surged to a fresh peak of 9.1 percent in June.

Beyond the hit to consumption from high prices, analysts worry the report will prompt the Fed to adopt even tougher measures to tighten monetary policy, such as a full percentage point interest rate increase at the July 27 meeting