The conflict between Russia and Ukraine leaves us with great oscillations in the currency market

Posted on February 22, 2022 Yesterday, the United Nations Security Council held an emergency meeting where the Ukrainian ambassador warned that there would be a new invasion, while Washington reported the entry of between 169,000 and 190,000 Russian soldiers into the region. Faced with these movements, the reaction of the United States and Europe has been to threaten more sanctions. The Russian stock market plunged in its biggest drop since the global financial crisis of 2008 and the ruble depreciated for the third consecutive day, falling to more than 80 units per dollar. Oil soared to levels not seen in the last seven years due to the growing tension between Russia and the West, despite the fact that Iran saw progress to reactivate the 2015 nuclear agreement. Another commodity that is climbing to levels not seen in ten years is nickel, since it is a highly demanded material by manufacturers of electric vehicle batteries. In the foreign exchange market, the morning began with risk appetite, which allowed the euro to recover some ground against the dollar early in the morning, trading at levels of 1.1390. The positive optimism regarding the conflict between Ukraine and Russia and the good data in Europe in the early morning, allowed this movement from 1.1320 on Friday afternoon of last week. But little by little, the optimism about Ukraine disappeared in the market and the USD began to appreciate again to levels close to 1.1320. Later, with the European market closed, Russia recognized the independence of Donbass by appreciating the dollar to levels of 1.1288, the Japanese yen to 129.36 and the Swiss franc to 1.0338 against the euro. Market attention today will continue to be on the Ukraine-Russia conflict and reactions to yesterday’s announcement by Russia of recognition of the independence of Donetsk and Lugansk. INFORMATIONTitleThe conflict between Russia and Ukraine leaves us with great oscillations in the foreign exchange marketDescriptionYesterday the United Nations Security Council held an emergency meeting where the Ukrainian ambassador warned that there would be a new invasion, while Washington reported the entry of between 169,000 and 190,000 Russian soldiers in the region. Author GLOBALCAJA

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