Greenback index eases as buyers absorb information on Ukraine-Russia disaster By Reuters

Date:


2/2

© Reuters. FILE PHOTO: U.S. greenback banknotes are displayed on this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration

2/2

By Caroline Valetkevitch

NEW YORK (Reuters) – The U.S. greenback was down barely on Tuesday as buyers absorbed the newest information on the Russia-Ukraine standoff, with the greenback index briefly paring a few of its losses late within the day after President Joe Biden mentioned {that a} Russian assault on Ukraine stays a chance.

Biden, in nationally televised remarks, additionally mentioned reviews that some Russian forces have moved away from the Ukraine border haven’t but been verified by the US.

Earlier, Russia mentioned that a few of its troops had been returning to base after workouts close to Ukraine, information that appeared to cut back investor anxiousness over the disaster within the area.

Concern over the standoff has pushed beneficial properties lately within the safe-haven greenback, however buyers largely took a risk-on view on Tuesday, with U.S. shares rising.

The was final down 0.3%, whereas the euro was up 0.5% in opposition to the greenback at $1.1358. The U.S. greenback was up 0.1% in opposition to the yen at 115.64 and up 0.1% in opposition to the Swiss franc at 0.9255. The Russian rouble strengthened 1.80% versus the dollar at 75.32 per greenback.

Biden additionally mentioned the US is “not in search of direct confrontation with Russia” however that if Russia had been to assault People in Ukraine, “We’ll reply forcefully.”

A “feeling of de-escalation on the Russia-Ukraine border,” drove some underperformance within the greenback, mentioned Bipan Rai, North American head of FX technique at CIBC Capital Markets in Toronto, though buyers stay targeted on developments within the area.

Market contributors may even stay alert to any feedback this week from U.S. Federal Reserve officers on the rate of interest hike outlook.

Fed officers proceed to spar over how aggressively to start elevating charges at their March assembly, with St. Louis Fed President James Bullard on Monday reiterating requires a sooner tempo of Fed charge hikes. Different Fed officers have been much less keen to decide to a half-point hike, or had been even involved it might trigger bother.

“The secret is actually going to be what we hear from different Fed audio system later this week… That could possibly be pivotal for markets this week,” Rai mentioned.

The European Central Financial institution has joined its central financial institution friends in signaling a hawkish flip in its financial coverage at a gathering this month.

Sterling was about flat in opposition to the greenback at $1.3537. It had been rising amid expectations that the Financial institution of England was prone to increase rates of interest once more subsequent month after lifting them twice since December.

Buyers additionally assessed information displaying U.S. producer costs elevated by probably the most in eight months in January. The information follows final week’s report displaying a robust rise in shopper costs in January, with the annual inflation charge posting its largest improve in 40 years.

In cryptocurrencies, bitcoin was up 3.6%.

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Forex bid costs at 4:16PM (2116 GMT)

Description RIC Final U.S. Shut Pct Change YTD Pct Excessive Bid Low Bid

Earlier Change

Session

Greenback index

95.9930 96.2860 -0.30% 0.345% +96.3010 +95.9530

Euro/Greenback

$1.1358 $1.1307 +0.46% -0.09% +$1.1368 +$1.1304

Greenback/Yen

115.6400 115.5450 +0.08% +0.45% +115.8700 +115.2600

Euro/Yen

131.35 130.62 +0.56% +0.79% +131.5300 +130.4500

Greenback/Swiss

0.9255 0.9243 +0.12% +1.45% +0.9274 +0.9227

Sterling/Greenback

$1.3537 $1.3532 +0.04% +0.10% +$1.3566 +$1.3488

Greenback/Canadian

1.2729 1.2726 +0.02% +0.67% +1.2774 +1.2702

Aussie/Greenback

$0.7149 $0.7128 +0.31% -1.64% +$0.7156 +$0.7103

Euro/Swiss

1.0512 1.0449 +0.60% +1.38% +1.0530 +1.0447

Euro/Sterling

0.8389 0.8357 +0.38% -0.13% +0.8399 +0.8352

NZ

Greenback/Greenback $0.6637 $0.6609 +0.45% -3.00% +$0.6648 +$0.6604

Greenback/Norway

8.9035 8.8960 +0.07% +1.06% +8.9380 +8.8400

Euro/Norway

10.1127 10.0474 +0.65% +1.00% +10.1288 +10.0190

Greenback/Sweden

9.2869 9.3771 -0.52% +2.98% +9.3997 +9.2590

Euro/Sweden

10.5486 10.6040 -0.52% +3.07% +10.6140 +10.5222

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