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


© Reuters.

By Gina Lee – The dollar was up on Thursday morning in Asia. The euro was near a 21-month low over worries that the Russian invasion of Ukraine will hurt Europe’s economy, while commodity currencies were at multi-week highs as export prices surged.

By 10:35 ET (03:35 GMT), the that monitors the greenback against other currencies had edged up 0.4% to 97.547

This pair edged up 0.3% to 115.65

Both the pair edged lower by 0.14 to 0.7286 while they were down 0.23 to 0.6768.

The pair dropped 0.05% to 6.3181. Data earlier in today showed that February’s was 50.2.

It fell by 0.10% from 1.3389.

From its overnight low at $1.1058, which was the lowest point since May 2020, the euro has managed to rebound to $1.1111 during early Asian trades. It is still down 1.4% over the past week and will suffer a fourth weekly loss to the dollar.

However, the Australian currency reached a 7-week high on Wednesday. It will remain close to that level on Thursday as Australian exports, such as grain, coal and gas, rise. Nine sessions have seen the euro fall against the Australian currency, reaching a low of A$1.5218 for four years.

Jane Foley is a Rabobank FX strategist who told Reuters, “In the current crises, we consider the euro’s status vulnerable.”

The Russian companies and the European Union have complex corporate relationships, especially in the energy industry. As have many agricultural products, energy prices have gone up. The war in Ukraine thus suggests higher for longer inflation and the potential of slower economic growth,” she added.

Meanwhile, Europe’s hit a record 5.8% year-on-year in February 2022, according to data released on Wednesday. The European Central Bank will release it later that day.

Jerome Powell of the U.S. Federal Reserve stated that while the bank is expected to begin raising interest rates gradually in March, it would be careful and ready for more aggressive action if necessary. These comments are in keeping with expectations of investors.

The Russian invasion of Ukraine continues, with Kharkiv, the latter’s second-largest city, suffering heavy bombardment on Wednesday. According to reports, Russian forces also captured Kherson in the Black Sea.

All 141 United Nations member countries passed resolutions condemning the invasion. The Russian rouble has also been affected by Western sanctions. Moscow’s Russian currency dropped to 100 USD on Wednesday. It then traded slightly stronger at 97.999 US dollars in interbank foreign trade.

Others Eastern European currencies also took a beating, with record-breaking overnight dollar/euro rates for the Hungarian Forint and the Polish Zloty dropping to two-decades lows.

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