The euro sank Thursday to the lowest level against the pound since mid-2016, as the Ukraine conflict triggers concerns over the eurozone’s economic recovery from the pandemic.
The European single currency slid in London morning deals to 82.76 pence per euro, the lowest level since Britain voted in favor of Brexit.
“The (euro) depreciation has been driven by concerns about what Russia’s military aggression and the rally in commodity prices could spell for Europe’s growth trajectory,” said Victoria Scholar, head of investment at Interactive Investor.
The eurozone remains vulnerable to energy markets volatility because of its dependency on Russian oil and gas supplies, according to OANDA analyst Craig Erlam.
“The euro area is very exposed to the events in Ukraine, particularly on the energy side given how reliant it is on Russia,” Erlam told AFP.
“With heavy-hitting sanctions comes a cost — and the eurozone will pay more than others, which is weighing on the currency.”
The shared eurozone unit later stood at 82.81 pence, down almost 0.2 percent from Wednesday.