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The
common currency fell half a percent to as low as $1.1069.
Adding to the euro's woes there was a pullback in bets on a
European Central Bank interest rate hike -- German government
bond yields plunged on Tuesday.
"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 on Wednesday, seven days
into an invasion that has sparked massive international
sanctions, pushing 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. [MKTS/GLOB]
"The strength of commodity prices combined with Australia's much
improved current account position suggests that there is good
reason to expect AUD/USD to break with its traditional role of a
'higher risk' G10 currency," said Rabobank strategist Jane
Foley, who expects it can climb to $0.74 by the end of 2022.
In contrast, 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
per dollar on Wednesday.
Elsewhere sterling weakened 0.3% to $1.3293.
(Reporting by Tommy Wilkes; Additional reporting by Tom
Westbrook in Singapore; Editing by Simon Cameron-Moore)
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