The euro fell as low as $1.0886, its lowest level since May 2020, after the Ukraine war and hit a new seven-year low against the Swiss franc as the Ukraine war ratchets up risk for the euro area economy.
In recent trading, the euro falls 1.4% against the greenback to $1.0910 and 1.2% against the Swiss franc to CHF 1.003.
Concern escalated overnight after reports that a Ukraine nuclear power plant caught fire after Russia attacked the facility, Europe's largest nuclear power plant. Russia now controls the plant, according to Reuters.
The effects of rising energy and gas prices are expected to dim the European economic growth outlook. "Euro remains somewhat at the epicenter of risk aversion, Neil Jones, head of FX sales at Mizuho, told Reuters.
With the U.S. dollar considered a safer currency, the U.S. Dollar Index rises 1.0% to 98.79 and hit a 52-week high of 98.92 earlier. The strength of the dollar is also bolstered by a telegraphed rate hike of 25 bps at the Federal Reserve's March 15-16 meeting.