Euro slides to 20-year low against dollar on fears of spiralling gas prices

One strategist said: "We have had so many central banks hiking in these big increments that you are now getting talk of reverse currency wars."

The euro is the latest major currency to suffer from the prospects that soaring inflation will lead to a sharp slowdown in economic activity in the eurozone. 

The euro fell against the dollar to its lowest for 20 years amid renewed fears that spiralling prices of European wholesale gas could tip major eurozone economies into recession. 

The euro traded at $1.028 and is predicted to fall further, bringing it ever closer to parity against the dollar.