Entering the opening of the European session, the US dollar remained stable around a two -week high against its major rivals.
Risky sentiment is seen continuing to plague the market as tensions between Ukraine and Russia escalate causing investors to turn to safe-haven assets and currencies.
This in turn supports the US dollar as a safe-haven to rise, besides it also gets a boost ahead of the FOMC policy meeting.
Meanwhile, a risk -sensitive currency, the Aussie dollar failed to sustain gains from Australia’s rising inflation reading in the fourth quarter causing it to remain traded around its lowest level since December 2021.
The kiwi dollar also suffered due to the uncertainty that haunted the currency market, bringing it to fall to its lowest level since November 2020.
Following the development of the European currency, the pound sterling continued to weaken to a three -week low after being disappointed by readings of manufacturing and services data showing slower growth in January.
The euro also slipped to a two -week weakest due to the strengthening US dollar and the gloom of European Zone services data in January despite the manufacturing sector showing improvement.
Meanwhile, the loonie dollar traded lower at a two -week low against the greenback as investor attention was also targeted at the Central Bank of Canada (BOC) policy meeting.
