The euro rose on Friday; After a sharp drop on Thursday after the Russian invasion of Ukraine. The dollar depreciated against most currencies as the markets retreated with the thrilling move of the previous day. The Russian ruble also recovered and started trading at around $83.5. After hitting a record low of 89,986 on the last day. F.X. markets are slightly calmer. The world is trying to put up with the war in Europe. The size and importance of sanctions on Russian banks and their foreign currency deposits may take some time. The United States, the European Union, and some other countries responded to Russia’s invasion of Ukraine with a wave of sanctions. This hampered Russia’s ability to conduct business in major currencies, along with sanctions on banks and state-owned enterprises. Currency traders sought to assess the impact on monetary policy around the world.
European Central Bank policymakers said that the current situation in Ukraine could lead to a slowdown in the ECB from stimulus measures. Investors now expect the ECB to raise its benchmark interest rate by 35 basis points by the end of December. Last week, they saw the ECB raise 50 bps for December. Meanwhile, investors and some U.S. officials said the war would likely slow down, though it would not stop raising interest rates.
Euro – What to Expect
The head of the UBS FX strategy said he was surprised at how little the euro sold after the attacks on the European stock exchange. It is worth noting that the euro fell to its lowest level in seven years against a safe Swiss franc on Thursday. The single currency was up 0.1% at 1.0373 last. EUR = EBS was also 0.1% higher against the dollar at $1.1204. This was the lowest $ 1.1106 in the previous session since May 2020. Dollar Index = U.S. dollar against the basket of currencies, including the euro, dropped 0.1% to 96,981 on Friday; After reaching the highest level since June 2020. Bitcoin joined the recovery trend and rose to $38,817, for a total of 1.1%.
