The euro could fall to 0.90 against the dollar if Russia cuts off gas supplies to Europe, Kaspar Hense, senior portfolio manager at BlueBay Asset Management, told Bloomberg.

He predicts a depreciation of the euro if Europe starts to ration energy, which will also trigger a recession, although such a scenario is not his base case.

Winter can be very long, Hense told Bloomberg.

Hense's comments come after the euro fell to a new 20-year low on Tuesday as markets weighed in on growing recession fears. Inflation in Europe hit a record 8.6% in June, prompting the European Central Bank to hike rates aggressively.

Traders remain wary of the euro because the ECB has not moved to raise rates as aggressively as the Federal Reserve. In fact, the euro can't be bought this summer, said Keith Jakes, chief currency strategist at Societe Generale.