Euro fragile following a cut in Russian gas supply and a looming Fed hike

SINGAPORE (Reuters) – The euro nursed losses on Wednesday after its sharpest drop in two weeks, as a cut in Russian gas supply sent energy prices soaring, while the dollar held ground ahead of an expected U.S. interest rate hike later in the day.

The euro fell about 1% to $1.0108 overnight, the largest fall since July 11 and was steady in early Asia trade at $1.0139. Europe’s growth remains vulnerable to Russian gas supplies, which have become a major risk since the start of the Ukraine war.

Flows along the Nord Stream pipe from Russia to Germany fell on Tuesday and will drop further on Wednesday.