The euro nears parity with the US dollar on Monday as the largest pipeline carrying Russian gas to Germany entered its annual maintenance period and the flow is expected to stop for 10 days. Investors fear the shutdown will be prolonged due to the war in Ukraine, which would further restrict Europe’s gas supply and push the eurozone economy into recession.

It fell to the brink of parity on Friday at $1.0072, following the release of higher-than-expected June US payrolls data, before bouncing higher. Broux said the euro could only recover when the European economic outlook improves and the chances of aggressive interest rate hikes in the United States diminish. Analysts at ING added that with energy supply unlikely to improve and central banks showing no signs of distracting from tightening cycles, the worst case scenario for the euro is heading towards $0.95. in July. The dollar hit a 24-year high against the yen, after a strong election result for Japan’s ruling conservative coalition signaled no change in expansionary monetary policies. The dollar hit 137.28 yen in morning trading, its highest level since late 1998. It later gained 0.7 percent to 136.07 yen. The yuan fell 0.3% against the dollar. Cryptocurrencies were lower, with bitcoin trading around $20,000.