Feb 28, 2022 10:13PM ET
The dollar strengthened in Asia on Tuesday morning. The ruble stabilized slightly after falling to a record low, while the safe-haven yen steadied after one of the biggest rebounds in nearly seven weeks. However, investor attention remains focused on Russia's incursion into Ukraine.
Futures on the U.S. dollar index, which tracks the greenback against a basket of other currencies, rose 0.16% to 96.847 by 5:00 PM ET.
The USD/JPY pair rose 0.14% to 115.16.
The AUD/USD pair fell 0.01% to 0.7261, with the risk-sensitive Australian dollar trading at a near-week high. The Reserve Bank of Australia will announce its monetary policy decision later today. The NZD/USD exchange rate increased by 0.01% to 0.6760.
The USD/CNY pair rose 0.03% to 6.3115. China's February manufacturing purchasing managers' index came in at 50.2, the non-manufacturing PMI at 51.6, and the Caixin manufacturing PMI at 50.4.
The GBP/USD currency pair fell 0.03% to 1.3435.
The foreign exchange markets calmed down somewhat after Russian and Ukrainian officials held the first round of ceasefire talks. The rouble also recovered some of the dramatic losses it suffered earlier in the week when it plunged by as much as 30%.
However, the pressure on Russia remains as the West has imposed sanctions and excluded some Russian banks from the global SWIFT network.
The Central Bank of the Russian Federation (the Bank of Russia) has introduced an emergency 20% interest rate hike and other measures. The ruble last traded at 102.
According to Deutsche Bank's index, the currency's volatility on Monday was the highest in 14 months.