Dollar soars to new twodecade highs
Investors in riskoff mood, shed stocks again
Focus for the week is U.S inflation data on Wednesday

LONDON, July 12 Reuters The euro sank to within a whisker of parity with the dollar on Tuesday and stock markets fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors.

The dollar39;s role as the safehaven goto currency for investors worried about the economic outlook has been burnished in recent weeks, with the U.S. currency roaring to twodecade highs against multiple currencies.

The euro has been particularly vulnerable given the impact of an ongoing spike in natural gas prices on the regional economy and the war in neighbouring Ukraine, and with the European Central Bank behind rivals in raising interest rates.

By 0725 GMT, the euro was down 0.3 at a low of 1.0004 , its weakest in more than 20 years.

The dollar index gained 0.3 to 108.48 , while sterling hit another twoyear low and the yen was not far off its weakest in more than two decades .

Mizuho analysts said the move towards parity was happening as recession in the euro zone is priced in, and said the backdrop suggested little to improve risk sentiment.

Either way, there looks to be little preventing eurodollar breaking parity in the relatively near term, they wrote.

The focus for this week will be macro data including U.S. consumer inflation on Wednesday, and comments from Federal Reserve…