Tensions in Eastern Europe weighed on the euro Tuesday (15/2/22) and boosted demand for the dollar and the safe haven yen, while the greenback was also helped by the debate over more aggressive US interest rate hikes.
Quoted from Routers Tuesday (15/2/22) morning, the euro hit $1.1308 in early Asia after touching $1.1278. Investors were a bit worried overnight after Ukrainian President Volodymyr Zelenskiy called on citizens to raise the country's flag from buildings and sing the national anthem in unison on Tuesday. February 16th, the date some Western media have called the possible start of the Russian invasion.
Away from geopolitics, Fed officials continue to argue about how aggressively to launch the upcoming rate hike at the March meeting.
Tensions in Ukraine and a more aggressive outlook for Fed funds rates are both supporting the dollar in the near term, said Kim Mundy, senior currency strategist at Commonwealth Bank of Australia. The Yen Safe Haven usually benefits when investors are nervous, while the contrast between rate hikes is high. Dovish US and Bank of Japan interest rates should push Yen lower
Sumber Berita : Investing
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