Euro slides to parity with dollar for the first time in two decades

Heightened global uncertainty and an aggressive Fed monetary policy stance have benefited the safe-haven dollar

The euro dropped below parity against the dollar on Wednesday for the first time in almost two decades, as a hawkish U.S. Federal Reserve and growing concern about rising recession risks in the euro area continued to batter the currency.

The latest slide came after another hot set of U.S. inflation data.

Europe's single currency started this year on a strong note given a post-pandemic economic recovery. But Russia's invasion of Ukraine, surging European gas prices and fears that Moscow could cut off supplies further has raised the spectre of recession and hurt the euro.

Heightened global uncertainty and an