Dollar Hit to Two-Year High as Russia Raids Ukraine

The U.S. dollar jumped to its highest level in almost two years. The Russian rouble fell to a record high on Thursday after Russia began its invasion of Ukraine. Investors avoided risky assets and moved to safer shelters. Russian forces invaded Ukraine both by land and by air and sea. This is the most significant attack on a European country since World War II.

The dollar index rose 0.869% and reached its most significant daily percentage increase since March 2020, when U.S. markets were in the torture of the first wave of the pandemic. The dollar exchange rate reached 97,740 against the basket of major currencies. This is the highest since June 30, 2020. The dollar weakened slightly after the U.S. president announced new sanctions against Russia, including banks. There is a push as to which currency is the biggest haven.

The Russian rouble weakened 4.51% against the dollar to 84.96. After easing to record lows, totaling $89,986. Compared to other safe-havens, the dollar rose 0.77% against the Swiss franc. The Japanese Yen weakened 0.54% to $115.61 against the dollar. Greenback also rose sharply against other European currencies; Such as the Hungarian forint, the Swedish crown, and the Polish zloty.

Dollar and Russian-Ukraine Conflict

The Swedish crown fell 1.13% against the U.S. currency, to a total of $9.49. The dollar rose 2.85% against the zloty and increased 3.11% against the forint. The euro reduced to $1.1202 and dropped 0.95% overall. Sterling last traded at $1.3393, down 1.10% today.

The greenback has been declining recently. Tensions in Ukraine rose, and speculation has intensified that the U.S. Federal Reserve may be less aggressive in tightening policies at its March meeting. According to the CME FedWatch Tool, expectations for a minimum 50-point interest rate increase fell to 7.5%, from about 34% the day before.

Federation policymakers acknowledged on Thursday that the central bank’s tightening plans now echo the possibility of war and the impact on oil prices. Bitcoin in cryptocurrencies last dropped to $37,067.89 and reduced 1.22% overall. Ethereum dipped to $2,560.77 and lost 2.21%.