NEW YORK, July 11 Reuters The euro slid to a 20year low and came closer to parity against the dollar on Monday on concerns that an energy crisis will tip the region into a recession, while the U.S. currency was boosted by expectations that the Federal Reserve will hike rates faster and further than peers.

The biggest single pipeline carrying Russian gas to Germany, the Nord Stream 1 pipeline, began annual maintenance on Monday, with flows expected to stop for 10 days. Governments, markets and companies are worried the shutdown might be extended because of the war in Ukraine.

The most proximate concern for markets is whether or not Nord Stream 1 is going to come back online, said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto, adding that the markets will likely price in a recession for the region if it doesn39;t.

The euro tumbled as low as 1.0051 against the U.S. dollar, the weakest since December 2002.

The dollar index reached 108.19, the highest since October 2002.

The U.S. currency has gained on expectations that the Fed will continue to aggressively raise rates as it tackles soaring inflation.

The Fed is going to raise rates more aggressively than most other developed market central banks and we dont think other developed market central banks really have the bandwidth to keep up, Rai said.

The Fed is expected to lift rates by 75 basis points at its July 2627 meeting. Fed funds futures traders are pricing for its benchmark…