Around 5:30 p.m., the dollar gained 0.60% against the European currency, to 0.9686 dollars for one euro, approaching its highest since 2002 reached at the end of September at 0.9536 dollars for one euro.
The dollar climbed on Monday, buoyed by its status as a safe haven after massive Russian strikes in Ukraine, while good US employment figures should allow the US central bank (Fed) to continue its rate hikes. The greenback notably regained parity with the franc.
Around 3:30 p.m. GMT (5:30 p.m. CET), the dollar gained 0.60% against the European currency, to 0.9686 dollars for one euro, approaching its highest since 2002 reached at the end of September at 0.9536 dollars for one euro.
UN Secretary General Antonio Guterres denounced, according to his spokesman, “an unacceptable escalation of the war” in Ukraine after deadly Russian bombardments on a scale unmatched in months that hit kyiv and other cities.
On the foreign exchange market, this benefits “the dollar, often sought after in times of uncertainty”, commented the analysts of OFX.
The greenback also benefited from the strength of US employment in September, according to official data released on Friday.
These figures “reinforced market bets on a rate hike of 0.75 percentage points in November” at the next Fed meeting, said Richard Hunter of Interactive Investor.
This week, “there is less data to watch, with one huge exception: All eyes will be on the US Consumer Price Index (CPI) on Thursday,” notes Deutsche Bank analyst Jim Reid.
Against the pound, the greenback took 0.44% to 1.1037 dollars.
Announcements of new measures by the British central bank (BoE) to calm volatility in the long-term bond market and the announcement of an earlier-than-expected budget presentation by the government were not enough to reassure investors.
“There are still many uncertainties about how the BoE could achieve a calm exit” from its asset purchase program, said Fawad Razaqzada, analyst at City Index.
Yields on UK government bonds were rising again, a sign of falling demand in the market.
The 10-year rates moved to 4.50%, brushing their peaks since 2008 reached at the end of September at 4.59%.
The 30-year rates, whose soaring to 5.14% had provoked the action of the BoE in September, rose to 4.72%.