Title: Dollar Up, Euro Down as Russian Invasion of Ukraine Intensifies

Mar 03, 2022 10:44PM ET

By: AnalysisWatch

The dollar strengthened in Asia on Friday morning, while the euro had its worst week against the US currency in nine months. The Russian invasion of Ukraine and the resulting higher commodity prices continue to weigh on expectations for European economic growth.

The US dollar index, which tracks the greenback against a basket of other currencies, rose 0.16% to 97.950 by 10:36 PM ET.

The USD/JPY pair fell 0.09% to 115.36, while Japanese data released earlier in the day showed that the January 2022 jobs-to-applications ratio was 1.2 and the unemployment rate was 2.8%.

The AUD/USD pair gained 0.08% to 0.7335 after Australian retail sales rose 1.8%. Higher commodity prices due to the Russian invasion have helped the riskier Australian dollar rise steadily in recent weeks.

The NZD/USD currency pair increased by 0.07% to 0.6805 USD.

The USD/CNY currency pair remained stable at 6.3204 and the GBP/USD currency pair fell 0.02% to 1.3343.

Worsening the crisis in Ukraine, Russian troops shelled the Zaporizhzhya power plant in Enerhodar, Ukraine, during the day. On the eighth day of its invasion, which began on February 24, Russia continued to surround and attack Ukrainian cities. This includes the eastern port city of Mariupol, which has come under heavy fire.

According to reports, the largest facility of its kind in Europe was on fire, boosting the Australian dollar. The news sent the euro down a further 0.48% to $1.1009, its lowest level since May 2020. So far this week, the single currency has lost 1.84%, its worst week since June 2021. The dollar also fell against the safe-haven yen but gained against other currencies.