The euro hovered a whisker above parity on the dollar on Wednesday ahead of US inflation data, with traders wary a sky-high reading could force it to lows not seen in decades.
Analysts say it could fall further if fast-rising US consumer prices keep investors betting on US rate rises. The euro fell below parity with the Swiss franc last month and is flirting with a drop beneath its 200-day moving average against the pound. It was under pressure at 137.055 per dollar on Wednesday after hitting its lowest since 1998 on Monday at 137.75.Sterling has also slipped on the stronger dollar and analysts see it adrift in the wake of the resignation of British Prime Minister Boris Johnson last week.
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