NEW YORK- The euro fell against major currencies and the US dollar rallied as worries increased over the impact of the escalating Ukraine-Russia conflict, especially on Europe’s growth outlook.
The euro fell below $1.10 against the dollar, hitting its weakest level since May 2020. It was last down 1.3 percent at $1.0923 in its biggest daily percentage decline since March 2020. The European single currency also hit a fresh seven-year low versus the safe-haven Swiss franc.
Russian invasion forces seized Europe’s biggest nuclear power plant on Friday. A blaze in a training building was extinguished and officials said the facility was now safe, while combat raged elsewhere in Ukraine in the second week of the assault launched by Russian President Vladimir Putin.
Against the Swiss franc, the euro was last down 1.2 percent at 1.0025 francs, close to parity, a level investors are watching closely in the event that it prompts intervention from the Swiss National Bank to weaken its currency. The euro also sank against sterling, hitting its lowest level since June 2016. Strategists worry that surging energy and gas prices will hit Europe’s economic growth prospects.
Investors flocked to the US dollar and other safe-haven currencies. The US dollar index initially pared gains but then rallied further following data Friday that showed US job growth surged in February. The index also rose 2 percent on the week, the largest weekly percentage gain since April 2020.
Employers in the United States added 678,000 jobs in February, more than economists’ expectations of a gain of 400,000. Average hourly earnings were unchanged, however, compared with an expected 0.5 percent gain.
The index was last up 0.9 percent at 98.565, reaching its highest since May 2020, while the dollar was down 0.5 percent against the Japanese yen. – Reuters
