Dollar Rose While the Euro Was on Track for its Worst Week

Dollar Rose While the Euro Was on Track for its Worst Week

The U.S. dollar rose on Friday morning in Asia. Nevertheless, the euro was set for its worst week against the greenback in nine months. Russia’s actions in Ukraine and resultant higher commodities prices continue to drag on expectations of European economic growth. 

The U.S. dollar index that tracks the U.S. currency against a basket of other currencies gained 0.16% to 97.950 by 10:36 PM ET (3:36 AM GMT).

The USD/JPY pair dropped 0.09% to 115.36. Japanese data released on Friday showed that the jobs/applications ratio was 1.2 and the unemployment rate was 2.8% in the first month of 2022.

Dollar and Ukraine

The AUD/USD pair gained 0.08% to 0.7335, with retail sales growing 1.8%. The Australian dollar benefited from commodity prices. Higher commodity prices due to the war in Ukraine helped the Australian currency to climb steadily over the past few weeks. 

The NZD/USD rose 0.07% to 0.6805.

The USD/CNY pair was stable at 6.3204. The GBP/USD pair dropped 0.02% to 1.3343.

The situation in Ukraine is very complicated. Russian troops shelled Europe’s largest nuclear power plant in Zaporizhzhia. They also continued to attack Ukrainian cities on the eighth day of its invasion. 

The largest nuclear power plant was reportedly on fire, which gave the Australian dollar a boost. The news about the power plant sent the euro tumbling a further 0.48% to $1.1009, its lowest since May 2020. It dropped 1.84% in the week to date, its worst week since June 2021. The U.S. currency also declined against the safe-haven yen but gained against other currencies. 

Across the Atlantic, the Federal Reserve is set to hike interest for the first time since the Covid-19 pandemic began in 2020 when it hands down its policy decision on March 15.