Dollar Up, Euro Near 21-Month Low as Ukraine Crisis Worries Linger

Mar 3, 2022

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By Gina Lee

Investing.com – The greenback was up on Thursday morning in Asia. The euro was close to a 21-month low over worries that the Russian invasion of Ukraine will harm Europe’s financial system, whereas commodity currencies had been at multi-week highs as export costs surged.

The that tracks the dollar towards a basket of different currencies edged up 0.14% to 97.547 by 10:35 PM ET (3:35 AM GMT).

The pair edged up 0.13% to 115.65.

The pair edged down 0.14% to 0.7286 and the pair was down 0.23% to 0.6768.

The pair inched down 0.05% to six.3181. Chinese language knowledge launched earlier within the day confirmed that the for February was 50.2.

The pair inched down 0.10% to 1.3389.

The euro managed to recuperate to $1.1111 in early Asian buying and selling from its in a single day low of $1.1058, the bottom since Might 2020. Nonetheless, it’s down 1.4% for the week thus far and is ready for a fourth consecutive weekly loss towards the greenback.

The Australian greenback, however, touched a seven-week excessive on Wednesday, remaining close to that mark on Thursday as costs for Australian exports similar to coal, gasoline, and grains climb. The euro is down 9 periods in a row to a four-year low of A$1.5218 towards the Australian greenback.

“Within the present disaster, we view the euro’s standing as susceptible,” Jane Foley, a senior FX strategist at Rabobank which is reviewing its $1.11 goal on the draw back, informed Reuters.

“On a company degree, there’s a internet of advanced relationships between the European Union and Russian corporations, notably within the vitality sector. Vitality costs have pushed greater, as have these for a lot of agricultural merchandise. The warfare in Ukraine thus suggests greater for longer inflation and the potential of slower financial development,” she added.

In the meantime, Europe’s hit a report 5.8% year-on-year in February 2022, based on knowledge launched on Wednesday. The European Central Financial institution may also launch the later within the day.

Throughout the Atlantic, U.S. Federal Reserve Chairman Jerome Powell mentioned on Wednesday the central financial institution would start “rigorously” climbing rates of interest in March however was prepared to maneuver extra aggressively if wanted. The feedback had been extensively consistent with investor expectations.

The Russian invasion of Ukraine continues, with Kharkiv, the latter’s second-largest metropolis, struggling heavy bombardment on Wednesday. Russian forces have additionally reportedly captured the Black Sea port of Kherson.

A complete of 141 United Nations members handed a decision condemning the invasion. Western sanctions have additionally impacted the Russian rouble and different property. The Russian foreign money hit a report low of 100 per greenback in Moscow on Wednesday, earlier than buying and selling slightly firmer at 97.999 to the greenback in interbank commerce outdoors Russia.

Different Jap European currencies have additionally taken a success, with the Hungarian forint hitting report lows on the greenback and the euro in a single day and the Polish zloty falling to a two-decade low.

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