The euro has dropped below $0.99 for the first time in two decades after Russia halted the flow of natural gas through a key line.
On Monday, the currency of the 19-member eurozone was down. It had fallen to its lowest level in over a decade.
The dollar is seen as a safe-haven asset due to fears about the global economy. The dollar index hit a 20 year high.
The flow of natural gas from Russia to Europe was halted indefinitely on Friday after it was shut down for maintenance.
The oil leak in the turbine was the reason for the halt in flows. The suspension came after G7 finance ministers agreed to try to cap Russian oil prices.
Since Russia invaded Ukraine in February, there has been a lot of tension in Europe.
Prior to Wednesday, Russia had reduced the flow of natural gas throughNord Stream 1 to 20% of capacity. Natural gas and electricity prices went up last week despite the fact that they fell.
Natural gas prices went back to record highs on Monday. The Dutch TTF natural gas futures are on track for their biggest daily increase since May.
The eurozone economy is expected to fall into a recession as households and businesses cut back on energy use. The euro was down more than 10% from the start of the year.
The Federal Reserve's aggressive interest rate hikes have sent investors back to the dollar. The dollar index has increased in value.
Chris Turner, strategist at ING, said that it should not be a surprise to see the dollar remain bid.
The country's energy crisis has put the pound under pressure. The pound has lost more than 15% of its value since the beginning of the year.
"It seems like traders are losing their faith when it comes to the Euro-dollar or sterling-dollar," said Naaem Aslam.
Consumers are struggling to make ends meet and worry about their energy bills. There is no quick fix for this given the nature of the economic health of the EU and UK.
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