USD Exchange Rate Slips; Ukraine Crisis in Focus

On Friday, the USD exchange rate retreated against most currencies in Asia’s afternoon trading session, walking back from its significant upturn yesterday.

The USD to JPY exchange rate shed 0.23% to 115.23. Then, the USD to CHF exchange rate slashed 0.14% to 0.93.

At the same time, the USD to CAD exchange rate lowered 0.07% to 1.28.

Eventually, the AUD to USD exchange rate rose 0.39% to 0.72.

Likewise, the GBP to USD exchange rate elevated 0.10% to 1.34.

Correspondingly, the US dollar index, which tracks the greenback against its rival currencies, declined 0.02% to 97.12. It skidded from its hike of 0.98% to 97.14 yesterday.

Still, markets are on edge as investors focus on the development of the Ukraine crisis.

Subsequently, the United States and the European Union responded with a wave of sanctions against Moscow banks and state-owned enterprises.

Moreover, the White House impeded the latter’s access to foreign currencies.

The geopolitical tensions continued to escalate as Russian troops advanced towards the Ukrainian Capital of Kyiv.

On Thursday, Russia launched an attack on Ukraine, the biggest strike on a European state since World War Two.

Correspondingly, thousands of people have fled their homes as Ukrainian forces fought on multiple fronts.

Meanwhile, investors expected the war to slow but not to stop approaching interest rate hikes.

Previously, Federal Reserve policymakers sparred over whether, to begin with, a 25 or 50 basis point rate rise.

Experts anticipate consequences of the Russia-Ukraine conflict to translate into a less hawkish stance from major central banks.

On the economic data front, the US economy grew 7.00% in January, in line with the market estimates. The latest figure slightly edged up from the previous 6.90% result.

EUR to USD Exchange Rate Down

Meanwhile, the euro skidded 0.15% to 1.12 against the dollar. The single currency struggled to claw back its losses from the previous day.

Germany, Europe’s largest economy, posted a gross domestic product of -0.30%. It came in higher than the projected -0.70%, but down to the 1.70% in the third quarter.

Then, French consumer price inflation inched up 0.70%, surpassing the market expectation of 0.30%.

Policymakers at the European Central Bank mentioned that the Ukraine crisis could cause a slower exit from stimulus measures.

Furthermore, the Russian Rubble plunged 2.14% to 83.43 after hitting a record high.