Sharjah24 – Reuters: The euro dropped to a fresh two-decade trough on Tuesday as Europe was buffeted by concerns about energy supply and economic growth, while the dollar held firm against major peers, supported by safe-haven flows.

The euro EUR=EBS hit $0.9909, its lowest since late 2002, and was last down 0.29% at $0.9914.

Russia will halt natural gas supplies to Europe via the Nord Stream 1 pipeline for three days at the end of the month, the latest reminder of the precarious state of the continent's energy supply. Read full story

The pound GBP=D3 was similarly dragged to a new two-and-a-half-year low of $1.1729, while the Japanese yen JPY=EBS steadied at 137.270 per dollar after touching a one-month low of 137.705 earlier in the day.

The risk-sensitive Aussie AUD=D3 fell to a one-month low and last traded 0.29% lower at $0.6859. The kiwi NZD= slid 0.15% to $0.6163. AUD/

Elsewhere in Asia, China's yuan CNY=CFXS fell to an almost two-year low of 6.8552 per dollar.

Against a basket of currencies, in which the euro is the most heavily weighted, the U.S. dollar index =USD stood firm at 109.12, attempting to breach a two-decade high of 109.29 hit in July.

Another reason investors have sought shelter in dollars is the growing risk of a hawkish message from the Federal Reserve's Jackson Hole symposium, flagged by several officials last week.

Yields on the benchmark 10-year Treasury note US10YT=RR have risen about 4 basis points for the week and last stood at 3.0091%. Yields on the two-year Treasury note US2YT=RR were up similarly up around 4 bps at 3.3018% as investors remained on inflation and Fed-watch mode.