Title: Dollar Up, Fears of Ukraine Invasions Supports Safe-Haven Currencies
Feb 14, 2022 12:10AM ET
The dollar strengthened in Asia on Monday morning, but losses were minimal as safe-haven currencies held on to their gains while riskier currencies struggled to hold on to them. Investors also continued to worry about a possible conflict in Eastern Europe due to rising inflation.
At 12:04 p.m. EDT, the U.S. dollar index, which tracks the U.S. dollar against a basket of other currencies, rose 0.01 percent, rising from 96.082 to 96.082.
The USD/JPY currency pair rose 0.06% to 115.48.
The AUD/USD pair fell 0.24% to 0.7118 as Thursday's Australian jobs data and the possibility of surprise numbers sent the Australian dollar's volatility to a one-year high.
The NZD/USD pair fell 0.38% to 0.6622.
The USD/CNY pair rose 0.08% to 6.3597, while the GBP/USD pair fell 0.13% to 1.3542.
Growing concerns over Russia's incursion into Ukraine pushed the euro down to $1.1360 from $1.1495 the previous week. The riskier Australian and New Zealand dollars also remained below levels of the previous week, and the Russian ruble recorded its biggest fall in nearly two years on Friday.
The US sounded alarm bells on Sunday that Russia could create an unexpected pretext to invade a neighboring country, but Russia denied it. German Chancellor Olaf Scholz traveled to Ukraine later the next day and to Moscow the day after, warning of sanctions in the event of an attack.
The tensions are the latest shock to a market that has already recovered from the previous week's data on high US inflation. While fears of an immediate rate hike have eased somewhat, some investors expect the dollar to remain supported.