At $1.00005, euro draws closer to parity as US dollar runs rampant

The dollar index gained 0.3% to as high as 108.56, while sterling hit another two-year low and the yen was not far off its weakest in more than two decades

The euro sank to within a whisker of parity with the dollar on Tuesday and stock markets fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors.

The dollar’s role as the safe-haven go-to currency for investors worried about the economic outlook has been burnished in recent weeks, with the US currency roaring to two-decade highs against multiple currencies.

The euro has been particularly vulnerable given the impact of an ongoing spike in natural gas prices on the regional economy and the war in neighbouring Ukraine, and with the European Central Bank behind