# Dollar surges as Russia invades Ukraine Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-24 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Russian invasion of Ukraine drives US dollar higher and Meta Description: The U.S. dollar surged and the Russian rouble plummeted to a record low after Russia's invasion of Ukraine, driving investors to safe havens. URL: https://financedigest.com/dollar-surges-as-russia-invades-ukrainehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-02-24t020500z2lynxmpei1n020rtroptp4scandit-m-a-warburg-pincs-1736816147908-compressed.jpg) By Chuck Mikolajczak NEW YORK (Reuters) – The U.S. [dollar jumped](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") and the Russian rouble tumbled to a record low on Thursday after Russia launched an invasion of Ukraine, as investors fled risk assets and moved towards safe haven assets. Russian forces invaded Ukraine in a massed assault by land, sea and air, the [biggest attack by one country against another in Europe since](https://www.financedigest.com/dollar-retreats-headed-for-biggest-weekly-loss-since-mid-january-bitcoin-down.html "Dollar retreats, headed for biggest weekly loss since mid-January; bitcoin down") World War Two. The dollar index rose 1.501% and was on [pace for its biggest daily percentage gain since](https://www.financedigest.com/sentiment-in-uk-finance-falls-at-fastest-pace-since-2019-survey.html "Sentiment in UK finance falls at fastest pace since 2019, survey") March 2020, when U.S, [markets were in the throes of the first wave](https://www.financedigest.com/the-peppermint-oil-market-to-leverage-the-digital-disruption-wave.html "The Peppermint Oil Market To Leverage The Digital Disruption Wave") of the COVID-19 pandemic. The greenback [reached a high of 97.740 against a basket of major](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") currencies, its highest since June 30, 2020. We have a big geopolitical development that a lot of people haven’t seen before in their lives; it’s a classic risk-off move,” said Erik Bregar, director, FX & [precious metals](https://www.financedigest.com/u-s-money-reserve-reviews-real-talk-about-diversifying-with-precious-metals.html "U.S. Money Reserve Reviews: Real Talk About Diversifying With Precious Metals") risk management at Silver Gold Bull Inc in Toronto. There is a [push and pull](https://www.financedigest.com/the-push-and-pull-of-identity-security-adoption-in-the-financial-services-industry.html "The push and pull of identity security adoption in the financial services industry") over which currency is the biggest safe haven in the moment. The Russian rouble weakened 6.70% versus the greenback at 86.92 per dollar after softening to a record [low](https://www.financedigest.com/euro-rises-after-spanish-cpi-dollar-slips-towards-8-mth-low.html "Euro rises after Spanish CPI, dollar slips towards 8-mth low") of 89.986 per dollar. Against other safe havens, the dollar rose rose 1% against the Swiss franc while the [Japanese yen](https://www.financedigest.com/japanese-yen-gains-as-ueda-set-to-be-named-next-boj-governor.html "Japanese yen gains as Ueda set to be named next BOJ governor") weakened 0.52% versus the greenback at 115.56 per dollar. The greenback also [gained sharply against other European currencies such as the Swedish crown](https://www.financedigest.com/u-s-dollar-gains-ahead-of-fed-swedish-crown-falls-after-hike.html "U.S. dollar gains ahead of Fed; Swedish crown falls after hike"), Hungarian forint and Polish zloty. The [Swedish crown fell 2.35% versus the greenback at 9.62 per dollar](https://www.financedigest.com/dollar-edges-down-from-six-week-peak-swedish-crown-jumps.html "Dollar edges down from six-week peak, Swedish crown jumps"). The dollar rose 4.47% against the zloty and rose 4.37% against the forint. The [euro was down 1.65% at $1.1122 while Sterling](https://www.financedigest.com/sterling-gains-vs-euro-after-sausage-war-ceasefire.html "Sterling gains vs euro after ‘sausage war’ ceasefire") was last trading at $1.3277, down 1.96% on the day. The greenback has been subdued recently as tensions in Ukraine have [increased and fueled](https://www.financedigest.com/increasing-consumer-awareness-to-fuel-adoption-of-trailer-suspension-system-market.html "Increasing Consumer Awareness to Fuel Adoption of Trailer Suspension System Market") speculation the U.S. Federal Reserve may be less [aggressive in tightening](https://www.financedigest.com/sterling-slides-as-bets-for-aggressive-u-s-tightening-boost-dollar.html "Sterling slides as bets for aggressive U.S. tightening boost dollar") policy at its March meeting. Expectations for at least a 50-basis-point interest [rate hike](https://www.financedigest.com/dollar-firms-after-u-s-labor-data-suggests-more-rate-hikes.html "Dollar firms after U.S. labor data suggests more rate hikes") have dropped to about 13% from around 34% a day ago, according to CME’s FedWatch Tool. In cvryptocurrencies, bitcoin last fell 3.97% to $36,035.32. Ethereum last fell 5.96% to $2,462.71. (Reporting by Chuck Mikolajczak; editing by Jonathan Oatis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---