News Tech: The dollar fell against most currencies, including the euro, on Friday as markets reversed some of the previous day’s turbulent moves as Russia’s invasion of Ukraine spooked investors. The Russian ruble also recovered somewhat, trading at around 84.4 to the dollar on Friday after hitting a record low of 89.986 to the dollar the day before as Russia unleashed its biggest attack on the European nation since World War II.
However, the magnitude of the previous move means it is still up 0.8% for the week. “The first impact [of the dispute] will be on Russia and Ukraine, of course, but it will also affect the bond and foreign exchange markets in the Asia-Pacific region,” said Riyad Cho, Asia-Pacific head of market access for fixed income markets. Dolly said. trading platform. Chowdhury noted a “flight to quality, both in global assets (dollar and yen movements) and emerging markets.” Also part of Friday’s rally was the pound, which rose 0.4% to $1.343, the Australian dollar, which rose 0.46% to $0.7195, and the yen, which rose to 115.23 to the dollar.
The United States, the European Union, and several other countries have responded with a wave of sanctions banning Russia from doing business in major currencies, as well as sanctions against banks and state-owned enterprises. Fighting continued on Friday as Russian forces advanced toward Kyiv, with the euro rising 0.24% to $1.1218 after reaching its lowest level since May 2020 at $1.1106 on Thursday. Last but not least. Other currencies also rallied from the day’s decline, with the dollar index down 0.2% to 96.854.
In addition to the direct effects of the war in Ukraine, forex traders sought to assess the impact of the war on monetary policy around the world. Several European Central Bank (ECB) policymakers, some seen as dovish at times, said the situation in Ukraine could cause him to delay the ECB’s withdrawal from its stimulus package. rice field. Investors and some U.S. officials, meanwhile, say the war could slow, but not stop, rate hikes. Federal Reserve policymakers publicly debated whether to raise interest rates by 25 or 50 basis points at their March meeting.