Euro Rises After Russian Forces Begun to Return to Their Bases

The euro recovered on Tuesday, recouping almost all of its losses on Monday, buoyed by reports that some Russian forces in areas near Ukraine have begun to return to their bases.

The single European currency rose 0.4 percent to $1.1346, with European shares recovering with the support of those reports.

On Tuesday, Russian media quoted the Russian Defense Ministry as saying that some forces in military regions adjacent to Ukraine were returning to their bases after completing exercises, in a move that would ease the row between Moscow and the West.

On Monday, the euro sank to its lowest level in nearly two weeks after Ukraine’s President Volodymyr Zelensky called for the national flag to be raised on buildings and the national anthem sung simultaneously on Feb. 16, a date some Western media described as the likely start date of a Russian invasion.

Apart from geopolitical factors, Federal Reserve officials are still talking about how to start raising interest rates at the next meeting in March.

However, the US currency failed to obtain new support from these statements, as the dollar index fell 0.3 percent against a basket of competing currencies.

In terms of cryptocurrencies, Bitcoin increased 3.4 percent to trade at about $44,000.