Mar 02, 2022 10:43PM ET
By: AnalysisWatch
The dollar strengthened in Asia on Thursday morning. The euro was near a 21-month low on concerns that the Russian invasion of Ukraine could hurt the European economy, while commodity currencies hit multi-week highs amid rising export prices.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, rose 0.14% to 97.547 at 10:35 PM ET.
The USD/JPY pair rose 0.13% to 115.65.
The AUD/USD pair fell 0.14% to 0.7286, and the NZD/USD pair fell 0.23% to 0.6768.
The USD/CNY pair fell 0.05% to 6.3181. The Caixin purchasing managers' index for the service sector was 50.2 in February.
The GBPUSD pair declined 0.10% to 1.3389.
The euro recovered to $1.1111 in early Asian trade from its overnight low of $1.1058, the lowest since May 2020. Still, it is down 1.4% for the week so far and faces its fourth consecutive weekly loss against the dollar.
The Australian dollar, on the other hand, hit a seven-week high on Wednesday and remained near that mark on Thursday as prices for Australian exports such as coal, gas, and grain rose. The euro has fallen nine straight sessions to a four-year low of $1.5218 against the Australian dollar.
The Russian invasion of Ukraine continues with the heavy bombardment of Kharkiv, the country's second-largest city, on Wednesday. Russian forces have also reportedly captured the Black Sea port of Kherson.
Other Eastern European currencies were also affected. The Hungarian forint hit record lows against the dollar and the euro overnight, and the Polish zloty fell to a two-decade low.
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