The dollar index, which measures the greenback against a basket of peers, hit new five-week highs as Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed's Jackson Hole symposium this week.
The currency fell to as low as $0.99945, its lowest level since mid-July, and was last down 0.4% on the day. Bundesbank President Joachim Nagel told German newspaper Rheinischen Post that the German economy, among the most exposed to disruptions in Russian gas supply, is"likely" to suffer a recession over the winter if the energy crisis continues to deepen.
It gained 2.33% last week - its best weekly rally since April 2020 - amid a chorus of Fed policymakers stressing that more needs to be done to rein in decades-high inflation.