The euro hit a new 20-year low in early trading this morning as markets turn to what are considered safer havens such as the US dollar.
British sterling was also plunging, hitting its lowest level against the dollar since 1971, as the markets show nervousness about tax cuts and spending plans announced by Chancellor Kwasi Kwarteng.
Sterling tumbled almost 5% to $1.0327 before stabilising around $1.05425, with the fluctuations seen as a response to plans to embark on the largest increase in borrowing since 1972.
The euros woes are being exacerbated by energy security concerns and by a downturn in business activity across the eurozone further heightening recession fears..
Last week consumer confidence across the EU slumped to its lowest level on record, as households fear energy shortages and further inflation woes.