* Euro falls to under $1.02 for first time since 2002 * U.S. greenback index rises to new 20-year excessive * Swiss franc reaches a 7-year excessive vs euro * Yen strengthens after Japan’s inflation expectations rise * Graphic: World FX charges https://tmsnrt.rs/2RBWI5E (Adds recent costs, response to Fed minutes) By Herbert Lash July 6 (Reuters) – The greenback rose to recent 20-year highs on Wednesday and the euro tumbled to a brand new two-decade low as rising energy costs forged an extended shadow over the euro zone’s financial system however bolstered the U.S. currency’s safe-haven attraction. The greenback and euro had been little modified after the discharge of minutes from the Federal Reserve’s assembly in June, when the U.S. central financial institution hiked rates of interest by an outsized 75 foundation factors in an effort to corral inflation. Earlier, the greenback index, which tracks the buck in opposition to six currencies, shot above 107 whereas the euro tumbled under $1.02, each ranges final seen in December 2002. The index is up 12% yr so far and is ready for its greatest yr since 2014. The greenback has strengthened as energy costs are excessive and the Federal Reserve has been elevating rates of interest extra shortly than most different central banks, mentioned Shahab Jalinoos, world head of macro buying and selling technique at Credit Suisse. “You have conventional macro elements which might be driving greenback power proper now fairly than a risk-adverse transfer,” Jalinoos added. The United States is a web energy exporter, whereas Germany is working a commerce deficit for the primary time since 1991, Jalinoos mentioned. “High rates of interest within the U.S. and a commerce shift which is useful to the U.S. provides to sustainability of the greenback’s power,” Jalinoos added. The greenback index rose 0.498% to 107.04, with the euro down 0.8% to $1.0184. The index hit a excessive of 107.27 and the euro slipped 1% to a low of $1.063 earlier. Goldman Sachs raised its pure fuel worth forecasts, saying {that a} full restoration of Russian fuel flows by means of Nordstream 1 was now not the almost definitely situation. All oil and fuel fields that had been affected by a strike in Norway’s petroleum sector are anticipated to be again in full operation inside a few days, Equinor mentioned on Wednesday. Analysts count on a fast resurgence in oil costs as provide tightness persists and as front-month spreads have held up regardless of Tuesday’s worth fall. “It shouldn’t be solely the specter of nondelivery (of fuel) that’s weighing on the euro,” mentioned Moritz Paysen, foreign exchange and charges adviser at Berenberg. “The already-high energy prices are a burden. Energy prices in Europe are many instances larger than within the U.S.,” Paysen added. The divergence between central banks’ tightening cycles throughout the Atlantic remained in buyers’ focus. The euro dropped to its lowest stage in opposition to the Swiss franc for the reason that Swiss National Bank deserted its currency cap in 2015. The single currency fell 0.6% to a recent seven-year low at 0.9879. The yen gained a bit of help from some security bids after Japanese households’ inflation expectations strengthened within the three months to June, with the ratio of properties anticipating worth rises over the approaching yr hitting the best stage in 14 years. The Japanese yen weakened 0.03% to 135.92 per greenback. Bank of Japan has mentioned it might not withdraw financial stimulus as a result of inflation is because of hovering gas and uncooked materials prices blamed on Russia’s invasion of Ukraine and can possible show non permanent. Bitcoin final rose 1.2% to $20,409.69. Currency bid costs at 2:45PM (1845 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 107.0400 106.5300 +0.50% 11.893% +107.2700 +106.3400 Euro/Dollar $1.0183 $1.0265 -0.77% -10.41% +$1.0277 +$1.0162 Dollar/Yen 135.9450 135.8800 +0.04% +18.08% +135.9950 +134.9500 Euro/Yen 138.45 139.46 -0.72% +6.24% +139.5000 +137.2800 Dollar/Swiss 0.9711 0.9686 +0.39% +6.61% +0.9742 +0.9672 Sterling/Dollar $1.1927 $1.1959 -0.25% -11.79% +$1.1989 +$1.1877 Dollar/Canadian 1.3036 1.3029 +0.06% +3.11% +1.3078 +1.3013 Aussie/Dollar $0.6795 $0.6800 -0.06% -6.51% +$0.6826 +$0.6762 Euro/Swiss 0.9889 0.9940 -0.51% -4.63% +0.9949 +0.9876 Euro/Sterling 0.8536 0.8585 -0.57% +1.61% +0.8603 +0.8533 NZ $0.6155 $0.6174 -0.32% -10.08% +$0.6191 +$0.6132 Dollar/Dollar Dollar/Norway 10.1145 10.0630 +0.68% +15.00% +10.1670 +10.0220 Euro/Norway 10.3041 10.3275 -0.23% +2.91% +10.3770 +10.2644 Dollar/Sweden 10.5292 10.5030 -0.53% +16.76% +10.5763 +10.4678 Euro/Sweden 10.7232 10.7803 -0.53% +4.78% +10.7990 +10.7238 (Reporting by Herbert Lash in New York Additional reporting by Stefano Rebaudo Editing by William Maclean, Will Dunham and Matthew Lewis)