Dollar Rose As Investors Seek Safety in the Greenback

Dollar Rose As Investors Seek Safety in the Greenback

The U.S. currency gained on Monday, rising for three straight sessions, as civilian killings in Bucha, Ukraine and the prospect of increased sanctions pushed investors to seek safety in the U.S. dollar. 

The U.S. dollar also continued to benefit from a strong non-farm payrolls report for March that backed expectations for a hefty half a percentage point tightening by the central bank at next month’s meeting.

Russia attacked Ukraine more than a month ago. Unfortunately, the situation in many cities is far from being normal. 

Photos from Bucha shocked people all over the world. French President Emmanuel Macron’s comment underlines the severity of the situation. He called for new sanctions and said there were clear indications that Russian forces committed war crimes in the town of Bucha. 

Unsurprisingly, the Kremlin denied any accusations related to the murder of civilians in the town. 

Furthermore, German Defense Minister Christine Lambrecht said the European Union should discuss ending Russian gas imports. At the moment, the Russian Federation supplies some 40% of Europe’s gas needs. 

Dollar and the euro 

In late morning trading, the dollar index which tracks the greenback against a basket of currencies gained 0.3% to 98.89.

The single currency, which has been under pressure due to concerns regarding the economic damage from the war in Ukraine, declined. The euro dropped 0.6% to 0.4% versus the U.S. dollar to $1.0988. Against the British pound, the euro declined to a six-day low and it was last down 0.6% at 83.73 pence. 

The Japanese yen declined against the U.S. currency. The U.S. dollar gained 0.3% to 122.855 yen.

Markets in mainland China were closed for a public holiday. Nevertheless, in offshore trade the yuan remained under pressure due to concerns over a lengthening lockdown in Shanghai. Authorities in Shanghai plan to test all 26 million residents.