Russia’s invasion of Ukraine has had implications for the money market. The single currency suffers against safe havens.
On Friday, the single European currency fell below the index of $ 1.10 per euro and fell sharply against other safe havens, the Swiss Franc and the Yen, as investors defended themselves against the effects of Russia’s invasion of Ukraine.
Thus, the euro lost 0.81% to $ 1.0977, at 12:40 pm, in the first months of the Covid-19 epidemic, almost two years ago. Against the Swiss currency, the euro lost 0.7% to 1.0079 francs. Since January 2015, the two European currencies have not been close to equilibrium, with the Swiss National Bank dropping the value of the euro to 1.20 francs, which has been in effect since September 2011. 126.64 yen, a level not seen for more than a year.
“Transactions are strongly affected by night-time attacks on the largest nuclear power plant in Europe (in Saporizia, Ukraine, author’s note),” explains XTB researcher Walid Gautmani.
NATO on Friday condemned the “irresponsible” bombings by Russian forces against the power plant and said new sanctions against Moscow were being considered. French Foreign Minister Jean-Yves Le Drian has called on Russia to “continue to isolate” and the EU will discuss on Friday the possibility of imposing new sanctions against Moscow, especially on Russian energy.
“Slow growth”, “High inflation”
The economy of the eurozone is particularly dependent on Russian exports, so the euro is still faltering, especially against safe havens. “Vladimir Putin’s war affects the whole world, but the United States is far less so than Europe,” says Hollen Schmidt, a researcher in Bernberg. For the old continent, the outcome of the war was “low growth and high inflation.”
Among other currencies affected by the conflict, the Russian currency fell again against the greenback (-2.2%, 111.95 rubles per dollar).
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