Dollar loses steam, euro steadies as oil backs off in volatile day

NEW YORK/LONDON (Reuters) – The U.S. dollar reversed almost all of its earlier gains while the euro found itself on a steadier footing on Monday as oil prices retreated from highs reached as the United States and Europe considered banning Russian crude.

The dollar index was last up less than 0.1% at 98.94 in morning trading in New York having climbed as much as 0.6% overnight when the euro plunged on concern that higher energy prices will spark stagflation and hammer the European economy as it tries to recover from the pandemic.

The euro was last off 0.4% against the dollar at $1.089 after dropping as much as 1% earlier and 3% over three days.