Euro hits new 20-year low after Russia halts gas supplies

The risk-sensitive Australian dollar fell 0.5 percent to $0.6774, a seven-week low.

The euro falls to $0.9876 after Russia scraps a Saturday deadline for Nord Stream pipeline flows to resume.

By 10:00 a.m. London time (5:00 a.m. ET), the euro was trading around 0.9911 versus the dollar, having risen from lows of $0.9881 earlier in the day.

The euro fell below 99 cents for the first time in 20 years on Monday after Russia announced an indefinite shutdown of its main gas supply pipeline to Europe.

The euro has fallen below $0.99, a new 20-year low, after Russia halted gas supplies down its main pipeline to Europe, heightening fears of a regional energy crisis.

In recent months, the euro has become increasingly correlated with natural gas prices, with the former falling when the latter rose.

Europe is scrambling to wean itself off Russian supplies and build reserves ahead of the cold winter months, but investors believe the economic hit will be severe.

The euro fell to $0.9876 in early European trade on Monday, the lowest level since 2002, while sterling fell half a percent to a new two-and-a-half year low of $1.1444.

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has announced the closure of 150 stores as well as layoffs. Other staff layoffs related to the store closures are also to be expected.