EDL Capital is betting that the euro will slide to $0.80, a level not seen since the early days of the currency's launch some 20 years ago, according to a report by BNN Bloomberg.

The $751 million global macro hedge fund believes that a rampant inflation and instability in both bond markets and global politics could combine to trigger a “euro bear market”.

The report cites EDL founder Edouard de Langlade as Russian gas supply risks will fuel record inflation, forcing aggressive rate hikes at a time of recession and ramping up the cost to influential EU member states such as Germany of keeping the eurozone afloat.

In a letter to clients written earlier this month, de Langlade wrote: “Europe is on the brink of disaster, which could potentially lead to its breakup. We could move to a place where the dollar is not strong against everything but the euro gets weak against everything.”