Russian gas halt steps up pressure on euro, sterling

The dollar hit a 20-year high against a basket of peers on Monday, with sterling and the euro the biggest losers as Russia’s halt on gas supply down its main pipeline to Europe has sparked concerns over energy prices and growth.

The euro touched $0.9901 in early Asia trade, just above last month’s trough of $0.99005. Sterling hit a 2-1/2-year low at $1.1458, and remained close to its pandemic nadir, Reuters reports.

Russia scrapped a Saturday deadline for flows down the Nord Stream pipeline to resume, citing an oil leak in a turbine. It coincided with the Group of Seven finance ministers announcing a price cap on Russian oil.

Similarly, the pound has also been weighed down by concerns over rising energy costs. British foreign minister Liz Truss said over the weekend she would set out immediate action to tackle rising energy bills and increase energy supplies if she is, as expected, to become Britain’s next prime minister.

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