Russian and Ukrainian delegates met in Istanbul for the first face-to-face talks after which Moscow state TV said Russia would move troops away from Kyiv calling the move a de-escalation. Ukraine has said its top priority is to negotiate a ceasefire with Russia although remains skeptical about their intentions. The dollar sank on the news as safe haven assets sold off. Most every currency pair rose vs. the US dollar.
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FX Rates
March 29, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
EUR/USD 1.1135 GBP/USD 1.3144 USD/CAD 1.2512 AUD/USD 0.7485 USD/JPY 122.63 USD/CNH 6.3740 USD/ILS 3.1988 USD/MXN 19.9464 USD/CHF 0.9320 USD/INR 75.9925 USD/BRL 4.7605 USD/SGD 1.3558 USD/DKK 6.6878 USD/SEK 9.2772 USD/NOK 8.6621
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USD
The dollar sank on hopes of a move toward de-escalation in the Russian/Ukrainian war. Gold and US Treasuries also sold off as investors see a return to global economic growth if energy prices stabilize and global supply chains improve – which may be possible if the war ends. Bets on aggressive US monetary tightening have continued to undermine shorter maturity treasuries, while Government bond yields climbed.
GBPThe pound gained on the US dollar after Russia's announcement of de-escalation. However, the pound did not regain all of yesterday's losses and now trades just under 1.315. UK government bonds continue to march higher as the 10yr Gilt trades with the highest yield in six years.
EURThe euro surged higher on Russia’s claim of “de-escalation” and now trades at the highs for March. Long dormant euro bulls now see a catalyst to lift the Common Currency as the threat of the Russian/Ukraine war spreading diminishes.
CADThe Canadian dollar is hanging on to gains despite the price of oil falling 5% in morning trading. After oil traded between $110/bbl and $115/bbl all last week the price has dropped below $100 over the past two days. CAD over that period has remained at roughly the same 1.25 level despite high volatility throughout the trading day.
ASIA/PACIFICThe yen clawed back yesterday’s losses but is still trading around a six-year low when the BOJ intervened in the bond market. Japan’s jobless rate fell slightly to 2.7% in Feb, down from 2.8% in Jan.
Since twice hitting a low of 0.70 over the past four months, the Australian dollar is up 7% vs. the US dollar since the end of January. Aussie is flat this morning after the budget for Australia was released indicating a strong outlook for the economy, primarily aiming to boost prospects in upcoming elections.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/foreign-exchange-advisory
| Source: Bloomberg | |
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