The euro slipped to a five-year low of $1.05890 after Russia's Gazprom said it would cut gas supply to Poland and Bulgaria.
The US dollar index, which measures its performance against a basket of six major currencies, rose 0.3% to 102.6, after touching its highest since the early days of the pandemic. "With risk assets continuing to show instability and markets having now made a conviction call on the Fed's aggressive tightening cycle, the dollar has likely found a new floor," Pesole said.
Commodity currencies have also sold lately in favour of the safety of the US dollar, driving the New Zealand dollar to its lowest levels since January of $0.6551.The Australian dollar briefly touched its lowest level since February but caught some wind after Australian consumer prices surged at their fastest annual pace in two decades, spurring speculation that interest rates could be lifted from record lows as soon as next week. The Aussie was up 0.3% at $0.7149.