News
30 Mar 2022 • Daily News • 1 min read

Dollar Takes A Hit Amid Peace Talks Progress

The dollar tumbled against a basket of peer currencies on Wednesday morning following a breakthrough in peace talks between Russia and Ukraine, keeping the Euro afloat while decreasing the safe-haven appeal of the greenback. 

The US Dollar Index, which measures the value of the dollar against a bunch of other currencies, declined 0.32% to 98.125. 

The USD/JPY pair plunged 1.09% to 121.50. The Chinese yuan slid 0.06% against the greenback amid the new pandemic restrictions in Shanghai. 

Traders seem to turn to currencies deemed riskier. The euro hit a two-week high of $1.1134 and a three-month high of 84.82 pence against the pound. Hopes of a ceasefire after Russia pledged to drastically reduce military activity is most beneficial to the Euro from a geopolitical standpoint. The progress also saw the Rouble spike to a one-month high of 83.50 to the dollar.  

The Antipodean currencies Australian and New Zealand dollars gained ground with the boost driven by risk appetite. The AUD/USD pair was up 0.13% while NZD/USD climbed 0.45%.

Meanwhile the Japanese currency is clinging around 123 against the dollar and is on track through its worst month since November 2016. The yen has lost about 7% against the greenback as the Bank of Japan keeps its hawkishness at bay. It’s also sticking to its four-day pledge of limitless bond purchases to keep 10-year rates below the 0.25 percent cap, which resulted in a 0.225% drop in government bonds. 

*No information on this site is directed at nor does it intend to elicit citizens and/or residents of the USA, and is not intended for distribution to or use by any person in any jurisdiction where such distribution or use would be contrary to local law or regulation.

**Risk Warning: Trading leveraged products such as Forex may not be suitable for all investors as they carry a degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary seek independent advice.