HONG KONG- The euro held on to overnight gains in early Asian trade on Wednesday having jumped on reports that some Russian forces had moved away from the Ukraine border, though, with tensions still elevated, the common currency failed to make further progress.
The Russian defense ministry on Tuesday published footage to demonstrate it was returning some troops to base after exercises, however, US President Joe Biden said the United States had not verified the move.
In addition, hours after Moscow’s announcement, Ukraine said the online networks of its defense ministry and two banks were overwhelmed by a cyber attack.
The common European currency was steady at $1.1356 on Wednesday, having jumped 0.45 percent the day before.
Shares around the world rebounded following the reports, MSCI’s gauge of global equities closed up 1.34 percent. The Australian dollar, typically seen as sensitive to risk sentiment, echoed the euro, rising 0.37 percent on Tuesday, before steadying.
By contrast, the safe haven yen softened slightly and was last at 115.65 per dollar, having briefly touched 114.99 on Monday, when tensions were higher.
Overall, the dollar index which measures the greenback against six major peers, lost ground on Tuesday and was at 96.008.
However, analysts said the dollar was unlikely to fall too far. – Reuters
