Dollar to Euro Exchange Rate

As risk-averse investors favored foreign currencies on Thursday afternoon, the exchange rate between the Euro and the US Dollar (EUR/USD) rose.

Approximately 0.2% higher than Thursday’s opening price, EUR/USD was trading at around $0.9786 at the time of writing. The Euro (EUR) gained ground over the US Dollar (USD), but otherwise mixed traded in a wide range. The main reason for this was the escalating geopolitical tensions in Ukraine.

Vladimir Putin appears to be using his drone-caused nationwide blackouts as a weapon to break Ukraine’s spirit as internal fighting intensifies. This comes after several missile attacks launched last week at civilians in Kherson, leaving the area in ruins.

The US Dollar (USD) had difficulty finding support as investors turned to more volatile currencies due to their increased risk appetite.

Despite the escalating conflict in Ukraine and the political unrest in the UK, the market mood has improved. Russia has started using kamikaze drones to destroy Ukraine’s electrical infrastructure, resulting in nationwide blackouts.

Looking ahead, the speeches by Fed policymakers scheduled for Friday night may hurt the Euro/US Dollar exchange rate.

The “Greenback” could gain if the policymakers adopt a hawkish stance because this would support the expectation of an aggressive interest rate hike at the Fed’s next policy meeting.

The yen’s trajectory can be kindly explained by saying that the Federal Reserve is more to blame than the BOJ. Undoubtedly, the yen is under pressure due to the growing difference in yields between the United States and Japan. The real force, however, is an aging, heavily indebted economy following a monolithic economic strategy decade after decade, government after government.

In the world of currency trading, Japan currently has two issues. One, there are very few ways to put a floor under the yen, and investors are aware of this.