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Dollar Down, Euro Falls to Lowest Since June 2020 on Russia’s Invasion of Ukraine -Breaking

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© Reuters

By Gina Lee

Investing.com – The dollar was down on Wednesday morning in Asia, but the moves were small. Investors flocking to safe-haven assets as Russia’ invasion into Ukraine intensified.

By 9:58 ET (2:00 GMT), the that monitors the greenback against other currencies fell 0.01% (2:58 GMT)

Both the pair rose 0.09%, to 115.00

While the pair rose 0.45% to 0.7281, it was down 0.37% at 0.6781.

While the pair stabilized at 6.33125, it increased by 0.05% to 1.3327.

After falling to its lowest level since June 2020, the euro fell 0.8% in the last day. The invasion of Ukraine intensified and the Russian rouble fell.

Morgan Stanley (NYSE:) analysts said in a note that they were closing trade recommendations for long euro against the U.S. dollar, yen, pound and the Brazilian real and were “neutral on the euro overall.”

“Investors who have assets in Russia that will be increasingly challenging to divest thanks to growing capital controls and sanctions may look at hedging options. The note stated that currencies with a strong correlation to RUB risks may be considered as an option. This includes currency in the CEE region and possibly the EUR.

“We will potentially look to re-enter these positions and re-affirm our EUR-bullish thesis in the future should conditions warrant, but, for now, we think it best to keep risk limited and preserve capital for when clearer themes emerge,” the note added.

Investments focused on the most recent developments in Ukraine. Russia warned Kyiv residents not to leave their homes and Russian commanders intensified bombardment of Ukrainian cities.

Russia’s invasion of Ukraine is the biggest assault on a European state since World War Two. Some Russian banks were removed from the SWIFT global network and sanctions were imposed by the West. Following Europe and Canada, the U.S. will likely ban Russian planes from American airspace.

Their close was the highest since August 2014. This is due to energy shortage worries. The coordinated release of crude stocks by the U.S. and allies to minimize supply disruption failed to ease worries as Russia is one of the world’s top oil exporters.

“The likelihood of a ’70s-style global oil shock is growing, and investors are moving to safe havens as fast as they can,” Cambridge Global Payments (NYSE:) chief market strategist Karl Schamotta told Reuters.

“The euro is on the front lines here, most exposed to energy shock,” with the euro falling as oil and gas prices jump, he added.

The cryptocurrency market was up 2.3%.

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