By Gina Lee

Investing.com – The dollar was down on Tuesday morning in Asia, while the euro was stuck near a 22-month low. Russia’s invasion of Ukraine continues to dim Europe’s economic outlook, but a weeks-long rally in commodity currencies showed signs of a pause.

By 10:30 ET (3:30 GMT), the that monitors the greenback and a basket other currencies had dropped 0.16% to 99.135

It rose 0.13%, to 115.44. The largest current account deficit was recorded since 2014 with at JPR1.189 trillion ($10.33 Billion) and at JPY0.19 TILLION in January 2022.

The pair inched up 0.10% to 0.7324, with Australia’s at 13 in February. At 0.6831, the pair was stable.

Both the pair fell by 0.13% at 6.3126, while the other pair declined by 0.18% at 1.3125.

Despite six consecutive sessions of selling, the euro was still close to Monday’s $1.0806 low. Since Russia invaded Ukraine in February 24, the single currency has fallen 4% against the dollar, with no sign of an end to the conflict. On Monday, for the first time since seven years, the euro was close to parity with the Swiss Franc.

Two rounds of peace negotiations between Russia and Ukraine have resulted in little progress. Germany’s rejection of a ban on Russian oil imports has led to oil futures falling from Monday’s peak of 14 years. However, many investors have warned that this supply shock could hurt European growth.

Carol Kong, strategist at Commonwealth Bank of Australia told Reuters that markets could price in the possibility of disruptions to Russian energy exports. This would also lower the European growth outlook.

We expect that the euro will remain in pressure. The euro/dollar could test the COVID-19 lowest of $1.068888 in this month.

Investors now await the European Central Bank’s , due to be handed down on Thursday. Economists speculate that the central bank might delay raising interest rates until 2022 due to the possibility of stagflation.

Alongside commodities’ meteoric rally, the conflict in Ukraine and the Western sanctions that followed saw the rouble sliding to a record low of 160 to the dollar in erratic offshore trade on Monday. The U.S. dollar was stable despite concerns about the prolonged war and its economic impact.

In Asia Pacific, the Australian and New Zealand dollars rose in early trade but were below Monday’s four-month highs.

In just over one month, the New Zealand dollar rose 4.5% as the Reserve Bank of New Zealand began a series of interest rate increases. Analysts at ANZ Bank said Tuesday that energy price pressures could lead to back-to-back 50 basis-point increases in April and May.