The U.S. dollar fell slightly on Tuesday. Investors have learned the latest news about the Russia-Ukraine confrontation. Joe Biden said that a Russian attack on Ukraine is still possible. Hence, the dollar index corrected the loss at the end of the same day. Speaking on national television, the president said that reports that part of the Russian forces had crossed the border into Ukraine had not yet been verified by the United States. Earlier, Russia said part of its troops would return to base after training near Ukraine. This, in turn, seems to reduce investor anxiety over the crisis in the region. Concerns over the controversy have led to a recent rise in the haven dollar; However, investors are primarily at risk when U.S. stocks have risen.
The U.S. dollar index recently fell 0.3%. The euro stood at $1.1358 against the dollar, up 0.5% overall. The U.S. dollar rose to 115.64 against the yen and increased 0.1%; it gained 0.1% to 0.9255 against the Swiss franc. The Russian ruble strengthened by 1.80%; In terms of dollars totaling up to 75.32.
Biden noted that the U.S. does not seek a confrontation with Russia; However, if Russia attacks the Americans in Ukraine, the answer will be appropriate. The feeling of de-escalation on the Russian-Ukrainian border led to the low performance of the dollar. Investors remain focused on developments in the region. Market participants will also be wary of the prospect of interest rate hikes by U.S. Federal Reserve officials this week.
Fed and Ukraine-Russia Pressure
Federation officials continue to argue over how aggressively they should raise rates at the March meeting. The Fed officials were less prepared to raise half a point this week. They also worried that this might cause problems. The European Central Bank has joined its Central Bank peers to signal a reversal of its monetary policy at a meeting this month.
Sterling was about unchanged against the dollar, totaling $1.3537. It was growing amid expectations that the Bank of England will likely raise interest rates again next month. Investors also evaluated data showing that U.S. manufacturer prices rose the most in January for the eight months. The data will follow last week’s report. It shows a sharp rise in consumer prices in January. The annual inflation rate shows the most significant increase in 40 years. Bitcoin in cryptocurrencies increased by 3.6%.
