Amidst intensifying fears about the Russia-Ukraine war, the news of de-escalation is a clear indication of diplomacy. With this news of peace breakthrough and de-escalation, the price of the Euro hiked as other currencies fought hard to find a floor. The U.S. Dollar Index showed that the currency is down by 0.32% from 98.125 along with other currencies like the Japanese Yen. At the same time, currencies like the Australian and the New Zealand Dollar continue to spike high. The AUD/USD pair was up by 0.13% to 0.7516, and the NZD/USD pair spiked by 0.45% to 0.6964, while the USD/JPY pair was down by 1.09% to 121.50.
According to a source, this tentative good news of peace between the two nations would benefit the Euro more than any other currency owing to Europe’s proximity to the raging war and its reliance on Russia for the supply of energy. Along with Euro, the prices of other risk-sensitive currencies like the Australian and New-Zealand Dollars hiked; however, on the other side, the comparatively weaker currencies like the Japanese Yen are struggling hard to be in the market; it has lost by 7% to dollars as the Japanese Central Bank follows dovish stance post the de-escalation news. However, it steadied on Monday after the BOJ (Bank of Japan) pinned down Bond yields. Many forex trading brokers are keeping a close watch on the market as currencies show volatility.
U.S President Joe Biden had long appealed to the Russian President Vladimir Putin to step back from invading Ukraine. Biden said that diplomacy remains the only live option to disengage from the crisis that both countries are going through. At first, Vladimir Putin was not very happy with such a proposal and was not ready to step down. But as Biden’s threats of ‘economic pain and global isolation’ began to make serious repercussions in Russia, Putin had renewed calls for de-escalation and pledged to scale down its military operations from Ukraine.