The dollar indexwhich compares the greenback to a basket of six currencies, lost 0.59% to 98.496 units, after hitting its lowest level since March 17.
The euro recovered and hit a high since March 1, up 0.81% at $1.1076.
The moves came after investors adjusted their defensive bets following Russia’s promise during Tuesday’s peace talks to scale back its attack on kyiv.
However, the United States warned that had not seen “signs of real seriousness” in Russia’s pursuit of peacewhich invaded Ukraine on February 24.
“The markets seem to have adopted an optimistic stance long before the peace talks have produced any results”ING FX strategists wrote in a note to clients.
“The forex market may distance itself further from the Russia-Ukraine trade and start to catch up with wide moves in rate spreads and growth, all of which point to a stronger dollar,” he added.
Elsewhere, the yen rallied further from Monday’s seven-year low, gaining 0.89% against the dollar at 122.83.
Source: Ambito
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