LONDON—The euro dropped to its weakest since 2017 on Wednesday after Russia halted gas supplies to Bulgaria and Poland amid rising investor concerns for the regional economy, while stocks staged a small rebound after a mixed bag of corporate earnings.
Russia’s decision to cut the gas flow to Bulgaria and Poland for rejecting its demand to pay in rubles took direct aim at European economies and add to the euro’s woes—giving investors more reasons to snap up U.S. dollars.
The dollar has surged more than 4 percent in April and is on course for its best month since January 2015, propelled by mounting expectations for the Federal Reserve to hike interest rates aggressively in coming months and for the U.S. economy to hold up better than the eurozone.
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