The euro plunged to $0.9998 against the greenback
Reuters
The dollar surged to a 20-year high against a basket of currencies and the euro broke below parity against the greenback after data on Wednesday showed US consumer price inflation surged to a 40-1/2-year high in June.
The consumer price index increased 1.3% last month as gasoline and food costs remained elevated, more than the 1.1% expected by economists polled by Reuters.
"This morning's number is staggeringly high. It's higher than expected and shows that inflation is going quickly in the wrong direction," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The euro plunged to $0.9998 against the greenback, breaking below the $1 level for the first time since Dec. 2002, before bouncing back to last trade at $1.0024.
The dollar index reached 108.59, the highest since Oct. 2002, from around 107.9 before the data released.