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Euro weakens against safe havens as tensions rise in Ukraine

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Euro weakens against safe havens as tensions rise in Ukraine

News Tech: Demand for safe-haven currencies, including the weakened euro and US dollar, surged on Thursday amid growing fears that a full-scale Russian invasion of Ukraine is imminent.
The dollar, yen and Swiss franc all rallied to multi-week highs against Europe’s single currency, but US Secretary of State Anthony Brinken said Russia was about to invade Ukraine.

It fell 0.29% to ¥129.640, approaching Tuesday’s low of 129.360, the lowest since February 3rd. He fell 0.22% to 1.03550 francs and on Tuesday he closed at 1.03405. This is his lowest level since January 24th. The US dollar index, which measures currencies against six major rivals including the euro, yen and Swiss franc, rose 0.19% to 96.372 for the first time since February 14.

Afterwards, the dollar hovered near his one-week high against major rivals. Commodity-related currencies also plunged, succumbing to deteriorating risk sentiment after highs in commodity prices showed resilience in the first half of the week. Ukraine declared a state of emergency, Russia began evacuating its embassy in Kyiv, and Western countries imposed sanctions on Russia. The euro fell 0.26% to him at $1.12750, the lowest since February 1st. 3.

“There will no doubt be a canned response to Mr Blinken’s comments,” said Joseph Capruso, a strategist at Commonwealth Bank of Australia. “The situation certainly looks like it’s going to get worse before it gets better.” The Australian dollar fell 0.33% to $0.72075 and the New Zealand dollar fell 0.41% to $0.67475. Sterling dropped 0.08% to $1.35340.