Title: Dollar Up, Investors Look to the Latest Developments in Ukraine
Feb 22, 2022 11:41PM ET
The dollar rose in Asia on Wednesday morning. Investors are looking to get a handle on the latest developments in Ukraine.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, was up 0.04% at 96.050 by 11:32 PM ET.
The USD/JPY pair fell 0.05% to 115.02.
The AUD/USD pair rose slightly by 0.07% to 0.7224. The NZD/USD pair rose by 0.50% to 0.6764 after the Reserve Bank of New Zealand raised interest rates for the third consecutive day. The bank also said there could be further tightening to curb inflation.
The USD/CNY pair rose 0.01% to 6.3269, while the GBP/USD pair gained 0.09% to 1.3594.
Tensions between Russia and Ukraine remain on investors' radars as the West has imposed sanctions on Russia.
US President Joe Biden took action on Tuesday targeting Russia's elites and the sale of government bonds after Russian President Vladimir Putin ordered troops into two breakaway regions in eastern Ukraine. The sanctions are meant to punish Russia's economy but not hit energy markets, a senior US State Department official said.
Meanwhile, Germany halted a major gas pipeline project from Russia. US government bonds rose slightly after the sanctions.
As investors flee to safe-haven assets amid growing concerns, both the Japanese yen and the Swiss franc gained last week.
Investors now expect the US Federal Reserve to raise interest rates due to higher commodity costs in the wake of tensions between Russia and Ukraine.
On the data front, new home sales, GDP, and initial jobless claims will be released in the US on Thursday.