Dollar Weakens as Trump, Putin Talk End to War in Ukraine
The dollar weakened against all Group of 10 currencies as the prospect of an end to the war in Ukraine dampened demand for safe-haven assets.
The Bloomberg Dollar Spot Index fell 0.3%. The euro rose 0.5% to 1.0435. The offshore yuan strengthened 0.4% to 7.2847 per dollar.
U.S. President Donald Trump agreed in a phone call with his Russian counterpart Vladimir Putin to begin negotiations to end the war, a change from previous U.S. policy. U.S. Treasury Secretary Scott Bessent also presented an economic partnership agreement to Ukrainian President Volodymyr Zelenskiy during his visit to Kyiv.
“Hopes for a Russia-Ukraine ceasefire are driving positive vibes after Trump’s chat with Putin,” said Rodrigo Catril, senior foreign-exchange strategist at National Australia Bank Ltd. in Sydney. “The euro is likely to be stuck in a range of 1.025 to 1.050 in the short term.” The Russia-Ukraine ceasefire has the potential to be a tipping point, but at the same time we don’t think the euro is priced for a universal rate.”
Source: Bloomberg