Currency markets remained gloomy following a sell -off in the Wall Street stock market as investors continued to assess risks to the economy following a drastic surge in world commodity prices as a result of the escalating war in Ukraine.
The US dollar was strong at its highest level since May 2020 despite a slight decline in the Asian session, seeing the dollar index that measures the strength of the greenback trade steady at 99.15 against its main competitor.
Meanwhile, the euro continued to trade at its weakest level in almost two years against the USD with price movements showing little recovery from the fall recorded in early trading in the week.
Investors are now awaiting the European Central Bank (ECB) meeting on Thursday which is expected to see the central bank postpone any potential tightening.
This is because, the effects of the Ukraine-Russia war such as economic sanctions against Moscow and the sharp spike in commodity prices are feared to stifle European growth.
Commodity -linked currencies, the Aussie dollar, kiwi and loonie traded steady after it erased gains in the New York session following a decline in Wall Street stocks signaling risky sentiment.
In addition, the ruble continued to trade at its lowest level against the US dollar due to fears that the Russian economy would be affected by Western sanctions imposed on it.
