London February 13 2025: The dollar weakened against all Group-of-10 currencies as prospects for an end to the war in Ukraine damped demand for haven assets.
The Bloomberg Dollar Spot Index fell 0.3%. The euro gained 0.5% to 1.0435. The offshore yuan strengthened 0.4% to 7.2847 per dollar.
US President Donald Trump agreed in a phone call with his Russian counterpart Vladimir Putin to start negotiating an end to the war, a change from previous US policy. US Treasury Secretary Scott Bessent also presented an economic partnership agreement to Ukrainian President Volodymyr Zelenskiy during his visit to Kyiv.
“Hopes of a Russia-Ukraine truce are fueling the positive vibes post Trump’s chat with Putin,” said Rodrigo Catril, senior foreign-exchange strategist at National Australia Bank Ltd. in Sydney. “Euro price action is likely to be mostly contained in a 1.025 to 1.050 range near-term. A Russia-Ukraine truce offers the potential for a topside break, but at the same time we think the euro is not priced for a universal tariff hit.”
