The dollar reached the highest level in 20 years on Wednesday against major rival currencies as traders seek safety as Russia steps up its operations in Ukraine.
The dollar index, which compares the US monetary unit with currencies such as the euro, pound and yen, jumped to a two-decade high at 110.87 pointsalso as the Federal Reserve prepares another aggressive hike in US interest rates.
The pound sterling fell 0.21% against the dollar to settle at 1.1355 dollars, while analysts anticipate widespread declines in European stock markets
The United Kingdom today considered Putin’s announcement “worrying” and stressed that it should be taken “very seriously”, according to statements to the network SkyNews of the British Secretary of State for Foreign Affairs, Gillian Keegan.
The price of Brent crude oil for delivery in November rose 2.5% this Wednesday on the London futures market to stand at $92.89, after Russian President Vladimir Putin announced a partial mobilization.
North Sea crude, a benchmark in Europe, had ended the previous day at $90.59, which was 1.53% less than at the end of Monday’s session.
In a speech to the country, Putin announced the mobilization to defend the territorial integrity of Russia, considering that the objective of the West is to “weaken, divide and destroy” his country.
The announcement also had an impact on the foreign exchange and stock markets already operating in Asia.
The increase in oil prices may further worsen the energy situation due to the sharp increase in the price of gas at a global level due, above all, to the war in Ukraine.
This Tuesday the actions closed to the loss in wall street this Tuesday pending a key decision on interest rates by the Federal Reserve.
The S&P 500 lost 43.61 points, or 1.1%, to 3,856.28 points, while the Nasdaq Composite it gave up 107.87 points, or 0.9, to 11,427.15 points. The Industry Average dow jones it fell 306.89 points, or 0.99%, to 30,712.79 points.
(With information from EFE)