The Euro has fallen under the $0.99 mark to a fresh two-decade low on Monday as fears over the energy crisis worsened.

The single currency has been increasingly associated with natural gas prices over the past few months, with the Euro declining when gas prices rise.

Last Saturday, Russia scrapped a deadline for gas flows via the Nord Stream pipeline to resume, due to an oil leak, reports suggest.

The Euro fell to a low of $0.9876 in early trade in Europe, a level not seen since 2002, before edging up to $0.9939, remaining 0.2% lower on the session.

"Gas flows have been curtailed even more than expected and we have already seen evidence of demand destruction weighing on activity," said Michael Cahill, a Goldman Sachs strategist.

"We now expect the Euro to fall further below parity ($0.97) and remain around that level for the next six months," he went on to add.

Other currencies were also not immune to the rocketing energy prices. Sterling fell 0.5% in early trading to a fresh two and a half-year low of $1.1444, ahead of the announcement of the UK’s new prime minister, which is widely expected to be Liz Truss, Reuters news agency reports.

Elsewhere, the Dollar index – measuring the greenback against major peers – reached 110.27, albeit briefly, the strongest since June 2002 as the Euro fell. It subsequently edged down 0.2% to 109.74.

Furthermore, all eyes are on this week’s European Central Bank (ECB) meeting, with markets bracing for an 80% chance of a 75-basis point rate hike.

"Should the ECB push back so prematurely on market pricing, it will likely draw the curtains for the Euro's burial," said Simon Harvey, head of FX analysis at Monex Europe.

"While this would come as welcome news to the German manufacturing sector, which has seen new export orders continue to shrink, it would only fan the current energy related inflation pressures, making the ECB's goal of price stability even harder to reach."