Dollar close to two-week peak; geopolitical strain heat up
February 27, 2014 9:20 am
The US dollar clenched almost a two-week high versus a basket of major currencies on Thursday, as intensifying tensions in Ukraine backed safe haven demand for the greenback.
The dollar index was stable at 80.405, not really far from Wednesday’s high of 80.524, its most since February 13. The dollar was bolstered following emerging market currencies came under renewed pressure on Wednesday, led by a drop in Ukraine’s hryvnia as its central bank surrendered a managed exchange rate policy in favor of a flexible currency.
Escalating tensions in the region, President Vladimir Putin commanded 150,000 Russian troops to prepare for war games near Ukraine, agitating the United States to alert Russia that it would be a hefty mistake to employ military intervention.
Protest leaders in Ukraine, a former Soviet republic that Putin has regarded a brother nation, desire to create a new government after ousting former pro-Russia President Viktor Yanukovich.
Versus the dollar, the euro remained steady at $1.3687. On Wednesday, the euro had reached a low of around $1.3662, its lowest in around two weeks.
The euro’s moves versus the yen in Asia on Thursday were muted, however, with the individual currency holding steady at ¥140.12. The dollar surged up 0.1% against the yen to ¥102.41.
The material has been provided by InstaForex Company – www.instaforex.com
The US dollar clenched almost a two-week high versus a basket of major currencies on Thursday, as intensifying tensions in Ukraine backed safe haven demand for the greenback.
The dollar index was stable at 80.405, not really far from Wednesday’s high of 80.524, its most since February 13. The dollar was bolstered following emerging market currencies came under renewed pressure on Wednesday, led by a drop in Ukraine’s hryvnia as its central bank surrendered a managed exchange rate policy in favor of a flexible currency.
Escalating tensions in the region, President Vladimir Putin commanded 150,000 Russian troops to prepare for war games near Ukraine, agitating the United States to alert Russia that it would be a hefty mistake to employ military intervention.
Protest leaders in Ukraine, a former Soviet republic that Putin has regarded a brother nation, desire to create a new government after ousting former pro-Russia President Viktor Yanukovich.
Versus the dollar, the euro remained steady at $1.3687. On Wednesday, the euro had reached a low of around $1.3662, its lowest in around two weeks.
The euro’s moves versus the yen in Asia on Thursday were muted, however, with the individual currency holding steady at ¥140.12. The dollar surged up 0.1% against the yen to ¥102.41.
The material has been provided by InstaForex Company – www.instaforex.com
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