The eurofell to a fresh two-year low today as concerns over risingenergy pricesand potential shortagescast a long shadow over theeuro zone.
Demand for safe-haven assets also propelled the dollar to a fresh 20-year high.
All oil and gas fields affected by a strike in Norway's oil sector are expected to resume full operations within days, Equinor said today.
Meanwhile, Goldman Sachs raised its natural gas price forecast, saying a full recovery of Russian gas flows through Nordstream1 was no longer the most likely scenario.
Analysts expect oil prices to recover quickly as supply tightness persists and front-month spreads remain unchanged despite Tuesday's drop.
EUR/USD dipped 0.7% to 1.0186, falling below 1.02 for the first time since December 2002.
Euro zone consumers cut spending on food, beverages and tobacco for the second month in a row in May as prices surged, according to estimates released today by Eurostat, Eurostat.
Divergence between central bank tightening cycles across the Atlantic remains a focus for investors.
"The big question is whether this deterioration in growth prospects is enough to shorten the tightening cycle -- especially the Fed's," ING analysts said.
They believe foreign exchange markets will consolidate at current levels today ahead of the FOMC June meeting minutes due later tonight.
"It is widely believed that the Fed may ultimately have more opportunities than many other central banks to continue policy normalization," Unicredit analysts said.
The U.S. dollar index, which tracks the greenback against six currencies, was up 0.4 percent at 107.02, its highest since 2002.
The euro also fell to its lowest levelagainst the Swiss franc since the Swiss National Bank abandoned its currency cap in 2015.
The single currency fell 0.4% to a fresh seven-year low of 0.9897.
"Under current conditions, traditional safe-haven currencies such as the dollar, Swiss franc and yen appear to continue to outperform in the near term," said analysts at MUFG Financial.
The yen found modest support from some safe-haven buying after Japanese households' inflation expectations strengthened in the three months to June, with the share of households expecting higher prices in the coming year to the highest in 14 years.
The dollar fell 0.3 percent to 135.36 yen.It hit its highest level since 1998 at 137 in late June.
The Bank of Japan said it would not withdraw monetary stimulus because inflation was due to a surge in fuel and raw material costs due to the Ukraine crisis and was likely to be temporary.
Meanwhile, bitcoin fell 1.7% to last trade at $20,088, while ether rose 0.5% to $1,138.
