The dollar rose against all of its peers in early trading on Monday, as the fallout from the conflict between Russia and Ukraine has deepened and has overwhelmed demand for the world’s reserve currency.
“The USD is king, it offers liquidity and safe-haven attributes,” Rodrigo Catril, currency strategist at National Australia Bank Ltd., in Sydney, told Bloomberg.
According to Reuters, against the dollar, the British pound fell 0.3% to $1.3375, as this remains the safe haven of choice during market turmoil. Sterling rose 0.6% against a euro weakened to 83.58 pence and the ruble slumped around 30%.
“Sterling has held up surprisingly well, given that it is typically more sensitive to financial developments than others,” ING global head of markets Chris Turner told Reuters.
Western allies moved over the weekend to block certain Russian banks’ access to the SWIFT international payments system and announced plans to implement restrictions on the country’s international reserves. Central Bank of Russia.
Given this, the Bank of Russia acted quickly to protect its economy. It doubled its key interest rate to 20%, the highest in almost two decades, and imposed some controls on the flow of capital.
Likewise, the issuing entity reported that on February 24 it made foreign currency sales for a total equivalent to 84.8 billion dollars within the framework of foreign exchange interventions to support the ruble.
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