Euro drops amid outlook deterioration

The euro's losses deepened against the dollar as a result of a rapidly deteriorating global economic outlook, even though the energy situation in Europe is improving on the margin.

Oil prices have plunged to their lowest level since January and European gas prices fell from a peak of near €350 in August to now near €160.

Sentiment and the flight to safety are helping prop up the dollar, which acts as safe heaven as market participants deleverage and sell positions, increasing the demand for the dollar. In the UK, a crisis of confidence that send the pound tumbling also helped push the dollar higher.