SINGAPORE, Aug 23 — The euro dropped to a fresh two-decade trough on Tuesday as Europe was buffeted by concerns about energy supply and economic growth, while the dollar held firm against major peers, supported by safe-haven flows.Russia will halt natural gas supplies to Europe via the Nord Stream 1 pipeline for three days at the end of the month, the latest reminder of the precarious state of the continent’s energy supply.
“Given the current mood, there’s obviously concerns as to whether that’s going to be three days or whether it’s going to be three years,” said Ray Attrill, head of FX strategy at National Australia Bank . Chief on investors’ minds for Tuesday will be flash manufacturing PMI readings out in the euro zone and Britain later in the day, which will provide further clarity on the growth trajectory for the respective economies.
The risk-sensitive Aussie fell to a one-month low and last traded 0.29 per cent lower at US$0.6859. The kiwi slid 0.15 per cent to US$0.6163.Against a basket of currencies, in which the euro is the most heavily weighted, the US dollar index stood firm at 109.12, attempting to breach a two-decade high of 109.29 hit in July.