The euro fell to a fresh four-month low on Wednesday as investors anxiously awaited the start of a new fiscal pact with the European Union.
The euro was down 1.5% at $1.2827 in afternoon trade, while the greenback gained 1.7% to $1,287.99, while gold climbed 0.9% to a record high of $1:2,965.
The dollar index was also down 0.7%, to 104.83 yen.
The Japanese yen rose to 113.15 yen from 107.10 yen.
Bitcoin, the virtual currency that was first introduced in 2009, has surged since then.
It has more than doubled in value in a decade and reached a record $15,000 on Wednesday.
It is now worth more than $1 million.
The currency has been a virtual haven for those who are unwilling to pay for goods and services with cash.
Bitcoiners are concerned about the political ramifications of the pact.
The euro has been in a period of relative stability.
The European Union is struggling with a massive debt crisis and has not been able to agree on a new financial treaty to avoid a new round of eurozone bailouts.
If the pact does not get done, the currency will likely collapse, said Daniel Rolfes, a fellow at the Peterson Institute for International Economics.
“I do think it’s a little bit premature to speculate what the future of the euro will be,” Rolfe said.
“The market has to see how long the agreement will last, and if it ends, that will determine whether the euro survives or dies.”
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