SINGAPOREHONG KONG, July 6 Reuters The dollar stood tall on Wednesday, holding at a 20year peak against the euro and multimonth highs against other major peers as higher gas prices and political uncertainty renewed recession fears and sent investors scrambling to the safehaven currency.

In Asia, the euro was at 1.025, only a fraction above its overnight low of 1.0236, its weakest since late 2002, The single currency lost 1.5 on Tuesday, its biggest fall since COVID19 ravaged markets in March 2020.

Combined with falls in other major currencies, that left the dollar index just off its overnight 20year peak at 106.57, though fellow safe haven, the Japanese yen, rose.

Charu Chanana, market strategist at Saxo Capital Markets, attributed the euro drop to dollar strength and renewed fears of gas shortages in the Eurozone as Russia threatens to cut supplies further.

German and French yearahead power prices are around record highs as regulators try to ensure enough gas is bought for storage and supervise the drawing up of priority lists for access to gas.

Chanana added that the euro39;s drop had renewed the market39;s focus on parity with the USD, with the European Central Bank set to remain behind the Federal Reserve in tightening policy and given greater recession risks in the euro zone.

In the latest recession warning, yields on twoyear Treasuries again rose above those of 10year Treasuries. Yield curve inversion has in the past preceded a U.S. recession.

The euro39;s…