The US Dollar edged lower, and the Euro traded marginally above the previous session’s 22-month low as the Russia-Ukraine situation intensifies, threatening the European growth outlook.
US Dollar Index – which tracks the greenback against a basket of six other currencies – traded at 99.275, maintaining its strength as a safe haven during these difficult geopolitical times. At the same time, EUR/USD traded 0.1% higher at 1.0863, trying to recover from last week’s sell-off. Since Russia started its attack on Ukraine, the Euro lost 4% against the US Dollar.
Now, markets are awaiting the European Central Bank meeting on Thursday. Still, the Euro is unlikely to get support, given that the likelihood of slowing growth in the region and rising commodity prices could push policymakers to delay rate hikes until later in the year.
Today, the USD/RUB pair was indicated 4.1% lower at 130.00. The RUB benefited from the lack of consensus between Western governments on banning Russia’s oil imports.
Oil prices jumped again today, Brent passing the $126 per barrel, as fears of sanctions against Russian oil and fuel exports rose concerns about supply. Crude oil futures for April delivery went up 1.92% to $121.69 per barrel.
The supply disruptions are a result of decreasing inventories worldwide.
Sources: investing.com, reuters.com