News Tech: The euro traded near a 22-month low on Tuesday as the war in Ukraine dimmed Europe’s economic outlook, while currencies boosted by higher energy prices paused after a week of gains. Russia’s invasion of Ukraine has led to an increase in demand for assets seen as safer across all markets, with the dollar – the world’s reserve currency – up around 3% in the recent past. two weeks as the crisis intensified. The euro has regained ground for the day after five sessions of losses but is still trading near a low of $1,08060 on Monday – its lowest level since March 2020 as the COVID-19 pandemic invaded European markets.
Russia’s offensive in Ukraine continued on Tuesday but at a slower pace, though the fighting showed no sign of abating. Russia called its actions a “special military operation”. The crisis has led to soaring energy prices and inflation concerns and could be a blow to the global economic recovery. “Price developments appear to reflect concerns of a deeper recession/recession in the global economy due to energy price shocks,” currency analysts MUFG said in a note. “The weakening growth outlook for the eurozone economy has been reflected in the weaker euro”.
The ECB meets on Thursday with the specter of stalling inflation prompting economists to suggest that policymakers could delay a rate hike until the end of the year. The British pound last rose 0.2 percent at $1.31270 after falling to a fresh 16-month low of $1.30830 earlier in the session. The yen eased slightly to 115.57 USD/USD. Along with the commodity recovery, war and subsequent Western sanctions crushed Russian assets, with the ruble falling to a record low of 160 against the dollar in failed foreign trade usually on Monday.