Euro hits weakest level in 20 years as fears intensify over economic outlook

The euro dropped to its weakest level against the dollar in two decades on Tuesday and stock markets registered steep falls, as fears intensified about the health of the global economy.

In a sign of worsening sentiment about the growth outlook, Europe’s common currency lost 1.6 per cent against the dollar to $1.0257 — its lowest point since 2002.

Vasileios Gkionakis, head of European FX strategy at Citi, said that euro-dollar parity…