The US dollar re -extinguished losses in the European session after investors witnessed a fluctuation in market sentiment following the latest developments on Russia’s escalating invasion of Ukraine.
A senior Ukrainian defense official said Russian troops were near the town of Vorzel, about 20 miles northwest of Kiev.
Moreover, there are also reports saying that Russian troops have entered the Obolon district of Kiev, which is located about 10km from the capital.
The invasion from various angles raised market concerns that the situation would worsen if Russia succeeded in conquering Kiev.
Examining the movement of the currency in the European session, the dollar index traded higher at 97.12 against its other major rivals.
Investors will see the release of the U.S. consumer spending index (PCE) report in the New York session which is expected to show an unchanged reading in January.
Meanwhile, the euro retreated slightly from its previously recorded modest rise, putting it directly at its weakest level since June 2020 against the USD.
The pound also reduced its gains by trading around a two -month low. The UK’s action to block flights of Russian aircraft, Aeroflot has prompted Moscow to close its airspace to all aircraft registered in the UK.
On the other hand, the Aussie and New Zealand dollars tried to maintain the gains gained in the previous session with each trading stable at around 0.7200 and 0.6700 against the USD, respectively.
