© Archyde.com/DADO RUVIC
FILE PHOTO: US dollar bills
Por John McCrank
NEW YORK, March 30 (Archyde.com) – The dollar weakened to a nearly two-week low on Wednesday as optimism over Russia-Ukraine peace talks faded and investors’ attention turned to economic data and expectations regarding interest rates.
* The dollar index, which compares the greenback to a basket of six currencies, fell 0.57% to 97.861 in followingnoon trading in New York, having earlier hit its lowest level since March 17.
* Much of that weakness was due to the strength of the euro, which rebounded on Tuesday following Russia’s promise during peace talks to scale back its attacks on kyiv.
* The change in tone in the Russia-Ukraine peace talks suggested “the conflict may be moving into a more localized phase with some of the more extreme risk scenarios reducing in likelihood,” JPMorgan analysts said in a note to clients. on Wednesday that recommended buying the euro/dollar parity.
* However, the United States warned that it had seen “no signs of real seriousness” in the pursuit of peace by Russia, whose forces continued to shell the outskirts of kyiv and a besieged city in northern Ukraine on Wednesday.
* Although optimism over Moscow-kyiv talks faded, inflation reports stoked expectations that rising costs, accelerated by Russia’s invasion of Ukraine, would force Europe to raise interest rates sooner rather than later, supporting the euro.
* Preliminary data showed German annual inflation advanced to its highest level in more than 40 years in March as prices for natural gas and petroleum products soared. Preliminary CPI data from Spain for March showed prices rising at their fastest pace since May 1985.
* The euro traded at its highest level once morest the dollar since March 1, later trading 0.6% higher at $1.1152.
* Elsewhere, the yen gained 0.83% once morest the US currency at 121.85 per dollar.
(Edited in Spanish by Manuel Farías)