The continued strengthening of the US dollar and concerns over Russian sanctions could hurt the European economy have pushed the euro to plunge lower to its weakest level since May 2020.
The sanctions imposed on Russia are seen to affect the economies of the European Zone and the UK, which are heavily dependent on Russian commodities. This is because, almost 40% of the gas and over 25% of the oil imported into the European Union is from Russia.
Following that, these concerns also dragged the pound's currency trading to a nearly three -month low at the start of the European session.
The second Russia -Ukraine talks are reported to take place today. Investors however did not place high hopes as US President Joe Biden also warned to react more decisively on Russia.
In addition, Federal Reserve (Fed) Chairman Jerome Powell will also be speaking at the New York session, where he will testify before the Financial Services House Committee.
The US dollar giant continued to move higher, seeing the dollar index move closer to its highs since June 2020, at 97.65 against its main competitor.
While other safe-havens also recorded gains despite depreciation against the US dollar, with the yen trading higher against most other major currencies.
The Aussie dollar and the kiwi, which were initially unimpressed by concerns over European currencies, have shown depreciation as they have been influenced by the strength of the US dollar.
