Dollar at Two-Week High on Ukraine Tensions

The dollar rose to a two-week high on Monday as investors sought safe-haven assets amid fears that Russia was preparing to invade Ukraine.

The United States said Russia could make the move at any time and could suddenly create a pretext for an attack, and on Sunday reiterated its pledge to defend “every inch” of NATO territory. Russia denies any intention to launch an attack and accuses the West of “hysteria”.

The dollar index rose 0.4 percent to 96.328, the highest level since February 1.

The Russian ruble rose 0.2 percent to 76.99 rubles to the dollar, after falling to its lowest level since Jan. 28 on Friday, as investors dumped Russian assets.

The euro fell 0.4 percent to $1.1309, its lowest since Feb. 3.

The euro fell on Friday when the rush for safe assets outweighed expectations that the European Central Bank would tighten monetary policy.

European Central Bank President Christine Lagarde said any monetary policy action would be gradual.

The Federal Reserve is due to release the minutes of its January meeting on Wednesday, but analysts ruled out any action the US central bank might take to gain market attention until the risks of escalation around Ukraine subsided.

The yen rose 0.3 percent to 115.15 yen to the dollar and 0.6 percent to the euro.

The Swiss franc settled at 1.0479 against the euro, not far from its highest level since the third of February, which was recorded on Friday.