LONDON—The euro fell on Tuesday, almost touching parity with the dollar, a threshold not crossed for two decades, weighed down by the likelihood of recession triggered by an energy crunch and an ECB rate rise campaign that lags far behind that of the Fed.
The dollar index, a measure against six counterparts, with the euro most heavily weighted, was up 0.3 percent at 108.45. It had earlier climbed to 108.47, its highest since October 2002.
The euro has borne the brunt of dollar strength, falling as low as $1.00005, the weakest since December 2002, a level some analysts flagged as parity being tested.
By 1020 GMT it was changing hands at $1.00170, down 0.2 percent….