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At 08:56 GMT, the US currency was up to $1.4778 (0.90429p) per euro, Bloomberg reports.
Shares on markets across the continent fell as fears regarding the speed of economic recovery grew again and stocks in Dubai were set to record their lowest close for half a year.
Neil Jones of Mizuho Corporate Bank was quoted as saying that this meant there is "more risk aversion emanating from the Middle East", which is helping the dollar to climb.
He added that the "risk aversion trade is back on", with many currency investors turning to the dollar for its safe-haven benefits.
Elsewhere on the Forex markets, the yen was priced at 89.98c against the greenback during early trading in London, which also saw the FTSE 100 slide as banks and mining stocks edged lower.
Posted by Chris Weaver
