Euro Rises on The Hope of Progress in Ukraine Peace Talks

The euro rose on Tuesday on hopes of progress in peace talks between Ukraine and Russia, although risk appetite waned due to the rising number of COVID-19 infections in China.

On Tuesday, talks between Ukrainian and Russian negotiators to ease the crisis are expected to resume after video-conference talks after which no progress was reported.

Brent crude futures extended losses on Tuesday to a two-week low after ceasefire talks between Russia and Ukraine eased fears of further supply disruptions.

“This reflects the hope that the talks between the Russian and Ukrainian negotiators might lead to an imminent and peaceful solution after all,” Commerzbank forex analysts said in a note to clients in reference to the decline in oil prices.

The euro rose 0.55 percent to 1.0999 against the dollar.

The US dollar index, which measures the value of the US currency against other major currencies, fell 0.3 percent to 98.808.

The yuan settled at 6.3999, after hitting its lowest level since October 2021 last night at 6.4095.

On Tuesday, China recorded a big jump in daily COVID-19 infections, more than doubling the previous day, after imposing a rare travel ban on Shenzhen, the technology center in the south of the country.

The Japanese yen rose 0.3 percent after falling to a five-year low against the dollar at 118.44 overnight, while the Bank of Japan is preparing to maintain its ultra-loose monetary policy this week.