The euro surged to a record high of $1.19 against the US dollar today, up more than one per cent.
A major factor for the falling dollar was a US Commerce Department move to cap imports from the Chinese clothing industry, fueling fears that protectionism could undermine a nascent US economic recovery.
Meanwhile, oil prices surged nearly five per cent to some of their highest levels since the invasion of Iraq in March after a rumor-filled session.
Traders cited a variety of reasons for the jump, including a gasoline tanker stalled from entering New York, aggressive buying by mutual funds, weather concerns, a fall in the US dollar and positioning ahead of the release of the weekly inventory figures.
New York light sweet crude futures settled up $1.57 to $33.35 a barrel, while London's Brent crude settled up $1.42 at $30.47.
US gasoline futures was the biggest gainer, up 5.2 percent, at 91.57 cents per gallon, and hit a high of 92.50 cents, the biggest rise since August.
Heating oil futures, which enjoy rising demand with colder weather, gained 4.6 per cent to end at 89.92 cents per gallon and a daily high of 90.50 cents, its highest since March.