The euro has fallen to its weakest level since May 2020 as investors worried about the impact of intensifying conflicts in London — Ukraine on the region’s economic outlook. Meanwhile, the demand for the dollar has increased as nervous traders sought safety.
The common currency fell half a percent to $ 1.1069.
In addition to the euro issue, there was a retreat in bets on the European Central Bank’s rate hikes. Yields on German government bonds plummeted on Tuesday.
“It’s all negative for the euro, which is at the forefront of trade relations, energy supply and economic impact,” said Colin Usher, senior economist at Mizuho.
The dollar rose again and the dollar index rose 0.4% to 97.755.
The safe Swiss franc outperformed and the euro fell 0.4% to $ 1.0186, the lowest in seven years.
Russian troops bombard Ukraine on Wednesday for seven days in an invasion that provokes massive international sanctions, suspends sales to international companies, breaks ties and forces them to drop tens of billions of dollars worth of investment. I was trying to surround and conquer the city of Ukraine.
The Russian ruble continued to be under pressure at 108 per dollar, dropping to 120 at the beginning of the week.
Commodity-related currencies, such as the Australian dollar, continued to maintain their home currencies, supported by soaring oil, gas, coal and grains.
Rabobank strategist Jane Foley said, “There is good reason to expect the AUD / USD to break its traditional role as a’risk’G10 currency, with a significant improvement in Australia’s current account and rising commodity prices. It suggests that there is. ” It could rise to $ 0.74 by the end of 2022.
In contrast, despite the geopolitical turmoil, Japan imports most of its energy, so high energy prices limit the profits of the Japanese yen in safe shelters. It fell to $ 115.24 on Wednesday.
Elsewhere, Sterling fell 0.3% to $ 1.3293.
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