The euro could sink to 0.9 against the US dollar if Russia cuts off oil supplies to Europe, portfolio manager says

A portfolio manager said the euro could fall against the dollar if Russia stopped exporting oil to Europe.

According to Kaspar Hense, senior portfolio manager at BlueRay Asset Management, the euro will decline if Europe starts rationing energy which will also cause a recession.

Hense said it could be very long.

As the euro fell to a new 20-year low on Tuesday, Hense's comments came. The European Central Bank raised rates after European inflation hit a record high in June.

The Federal Reserve has raised rates more aggressively than the European Central Bank. According to Kit Juckes, chief global currency strategist at Societe Generale, the euro is un buyable this summer.

The euro is expected to fall to between $0.95 and $0.97 against the dollar, according to a note by George Saravelos.

A partial supply of Russia gas through the summer wouldn't be enough as the risks of a shutdown would persist in the winter, according to a note.