FRANKFURT (dpa-AFX) – The flight of investors to the US dollar, which is perceived as comparatively safe, in the wake of Russia’s sbel-rattling in the direction of Ukraine weighed on the euro on Monday. The common currency fell to $1.1294 by the evening. The European Central Bank set the reference rate last afternoon at 1.1316 (Friday: 1.1417) dollars. The dollar thus cost 0.8837 (0.8759) euros.
advertising
Trade forex now with up to 30 leverage
Trade forex with high leverage and small spreads. With only 100.00 you can benefit from the effect of 3,000 euros of capital!
Note on Plus500: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority (FRN 509909). Plus500CY Ltd is authorized and regulated by CySEC (#250/14).
In the morning, a euro had cost around $1.1350, on Friday even more than $1.14.
The continuing tense situation on the Ukrainian-Russian border is causing caution and restraint on the financial markets. Recent diplomatic efforts have so far yielded no visible results. Many countries have already called on their citizens to leave Ukraine. If Russia invades Ukraine, the western states will introduce tough sanctions, according to announcements.
The increasing conflicts could have a lasting impact on world trade. “The much more open economy of Europe, with its close ties to and dependence on Russia and China, would see its economic model threatened to a far greater extent than the USA,” explained Ulrich Leuchtmann, a foreign exchange expert at Commerzbank. In the short term, Europe is very dependent on Russia for energy. That is why the euro is suffering more than the dollar./mis/men