The strength of the US dollar continued to push most major currencies lower in the European session, pushing the euro to trade below the parity price level (€1=$1) for the second time this year.
The euro continues to be under selling pressure as the US dollar trades stronger, while the energy crisis also adds to the push factor for the currency to slip further.
Russia announced its plans last Friday that it will completely shut down the gas flow of the Nord Stream 1 pipeline to Europe for three days from August 31 to September 2.
On the grounds of 'maintenance', this action is seen to squeeze the European gas market once again which was already affected by the previous closure.
In the meantime, hawkish expectations for an increase in interest rates by the Federal Reserve (Fed) continue to support the strengthening of the giant US dollar, which is also followed by higher US 10-year bond yields.
Monetary policy differences between the Fed and the Bank of Japan (BOJ) continued to push the yen to a one-month low.
Also under similar pressure is the yuan after China's central bank cut key one- and five-year lending rates on Monday. This move follows a reduction in the one-year medium-term loan rate that was made last week.
On the other hand, the Aussie and New Zealand dollars recorded slight gains, with the Aussie antipodean currency supported by a surge in Dalian iron ore and copper commodity prices.
