The euro hit its lowest level against the US dollar since June 2020 on Tuesday and the Russian rouble was down in volatile trading as Russia's invasion into Ukraine intensified and oil prices surged.
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The US dollar index, which measures the greenback against a basket of currencies, jumped and was last up 0.6%, as investors flocked to safe-haven bets.
Investors were on edge over the latest Ukraine developments. Russia warned Kyiv residents to flee their homes, and Russian commanders shifted tactics to intensify the bombardment of Ukrainian cities.
Brent oil futures had their highest close since August 2014 amid energy shortage concerns. A global agreement to release crude reserves failed to ease worries about supply disruptions from Russia's invasion of Ukraine.
"The likelihood of a '70s-style global oil shock is growing, and investors are moving to safe havens as fast as they can," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. "The euro is on the front lines here, most exposed to energy shock," with the euro falling as oil and gas prices jump, he said.
