The euro fell to its lowest level since 2002 against the dollar on fears that a eurozone recession could be looming. The value of the currency is now $1,0281.

The euro zone's common currency fell to its lowest level against the dollar in two decades today as a fresh rise in European gas prices deepened fears of a recession.

Economic growth in the eurozone is collapsing, with prices rising due to the economic impact of the war in Ukraine.

How strong is the drop?

The euro fell as much as 1,3% against the dollar to $1,0281 – the weakest rate since December 2002.

The decline is part of a longer-term trend, with the euro weakening 8% against the dollar this year. That brings the euro closer to parity with the dollar – something not seen since the creation of the euro in 1999.

Currencies linked to the euro, such as the Hungarian forint, Polish zloty and Romanian lei, also weakened significantly against the US currency.

Meanwhile, stock indexes in Frankfurt, London and Paris fell more than 1% this morning amid concerns about an economic slowdown across Europe.

The sell-off in the euro also saw the currency fall to its lowest level against the Swiss franc since 2015, when the Swiss National Bank abandoned its currency cap. It also fell against the pound, despite the pound facing economic problems of its own.

Other currencies, such as the Japanese yen and the Australian dollar, have also struggled amid fears of a global recession and a rising dollar, seen as a safe haven in times of uncertainty.