Dollar drops as aid expected for Ukraine

Published: 25 Feb at 8 AM Tags: Euro, Dollar,

The dollar index has dropped a tad as investors look to riskier assets as the Ukraine expects international aid. The heavily indebted country is likely to receive aid from the West, something that has eased concerns and driven the greenback lower.

Commodity currencies including the Canadian, Australian and New Zealand dollars are up against their American rival. However, analysts are expecting the US dollar to rebound in the coming weeks because of positive economic data. More stability in the US could see the yen and the euro drop against the greenback in future sessions.

The euro is currently under pressure as the European Central Bank considers further stimulus moves. The single currency is flat at $1.3734. An official at the ECB has confirmed that the central bank is prepared for a deposit rate cut if needed.

The yen has come under pressure as data from China suggests that the world’s second largest economy may be faltering. The dollar is currently remaining static at 102.44 yen. The emerging markets are looking healthy with the Brazilian real and Mexican peso both up against the dollar.

Central bank bosses and finance ministers agreed at a group meeting recently to set a 2 per cent growth target for gross domestic product over the next half-decade.