Euro back at 2002 levels on fears of recession, energy crisis
U.S. equities regain some ground, U.S. Treasury yields tumble

July 5 Reuters The euro sank on Tuesday to its weakest level against the dollar in almost 20 years while oil futures tumbled and bond prices rose as investors sought safety after the latest data fueled fears of a global economic slowdown.

Euro zone recession fears were exacerbated by concerns about an energy crisis in Europe and by Tuesday39;s data, which showed a sharp slowdown in business growth in June, following Monday39;s news of a seasonally adjusted May trade deficit in Germany versus expectations for a surplus.

Oil prices suffered their biggest daily drop since March on growing fears of a global recession and lockdowns in China that could slash demand.

Bipan Rai, North America head of FX strategy at CIBC Capital Markets in Toronto, cited signs of a looming energy crisis in Europe and economic concerns for the euro39;s tumble.

The threat of a recession in the euro zone is a more clear risk now relative to before, Rai said.

The euro dropped by almost 1.8 against the dollar to 1.0236 , its weakest level since December 2002. It was last down 1.48 against the dollar.

Meanwhile the dollar index, which measures the greenback against a group of major currencies, was up 1.31, after hitting its highest level since December 2002. The dollar is seen as a safe haven in times of acute economic uncertainty.

The demand for the safety of…