The euro plunged to its weakest since May 2020 today as investors worried about the impact of an escalating conflict in Ukraine on the region's economic prospects, while demand for dollars rose as nervous traders looked for safety.
The euro fell 0.5% to as low as $1.1069 today.
Adding to the euro's woes there was a pullback in bets on a European Central Bank interest rate hike and German government bond yields plunged yesterday.
"For the euro which is front and centre with regard to the impact on trade relations, energy supplies and the economy, it's all negative," said Colin Asher, senior economist at Mizuho.
The dollar gained again, with the dollar index rising 0.4% to 97.755.
The safe-haven Swiss franc outperformed, with the euro down 0.4% at $1.0186 - another seven-year low.
Russian forces were attempting to encircle and subdue Ukrainian cities with intensifying bombardments today, seven days into an invasion that has sparked massive international sanctions.
The invasion has pushed international companies to halt sales, cut ties, and dump tens of billions of dollars' worth of investments.
Russia's rouble remained under pressure at 108 per dollar, having fallen as low as 120 earlier in the week.
Commodity linked currencies, such as the Australian dollar, continued to hold their own as surging prices for oil, gas, coal and grains provided support.
High energy prices have been capping gains for the safe haven Japanese yen, despite the geopolitical turmoil, as Japan imports the bulk of its energy. It slipped back to 115.24 a dollar today.
Meanwhile, sterling weakened 0.3% to $1.3293.
