The forex market has seen a significant movement on the 3rd of March as the situation in Eastern Europe gets worse. While the United States Dollar holds on to a steadier trajectory, the Euro falls short due to the impacts of recent bombardment in Ukraine. The sudden fall might bring any plans of the Central Bank of Europe to hike the prices to an abrupt halt. The greenback, on the other hand, looks good in the U.S Dollar index with a 0.16% hike.
The U.S Dollar index is one of the renowned indexes that track the movements of the American currency along with a handful of others from prominent economies around the world. As per the latest report from the index, the USD looked Hale and hearty even amidst an ongoing war in a neighbouring country. The currency, after the recent hike, went up to 97.950. Several reliable forex brokers consider it a good opportunity to wager on a set of currencies like AUD, NZD and CNY.
Following the attack on invasion, the commodity prices in Australia have gone up since the 24th of February. It actually provided the currency with much needed support for the past week. Australia also posts growing retail commodity sales, which grew by 1.8% in just a few days. The Australian dollar Aldo edged up 0.08% against the USD as per yesterday’s stands in the market. The commodity price has reached the neighbouring Kiwi dollar as well. The USD/NZD pair also upped as much as 0.07% in the last 24 hours. Surprisingly, the Chinese economy looks steadier in this situation, with a score of 6.3204.
The prices are likely to go up as the invasion continues for the 8th day on the 4th of March. Recent reports from the battlefronts hint about Russian troops bombarding a nuclear power plant. The effect of this attack, if proven true, could be ten times that of Chernobyl. As the power plant in Zaporizhzhya was attacked, it gave a positive boost to Australia, which is one of the largest energy producers in the world.
The devastating news has heavily affected the economy of European countries. Euro hit the gallows after the attack with a 0.48% fall, the lowest position since 2021. The Great Britain Pound, which is relatively closer to the vicinity too, incurred a 0.02% fall in its value in the global market. Experts believe that the devastating effects of the war will not be limited to Ukraine alone and would be felt in most parts of Europe. Russia, on the other side, would also experience some long-standing impacts on its economy following this invasion. These impactful events would delay any decisions of price hikes from the Central Bank of Europe. Apart from the European nations, Asian countries like Japan too felt a slight down-current. However, they are most likely caused by internal issues like unemployment, etc.