Home World Dollar gains ebb away as traders reassess risks from Poland

Dollar gains ebb away as traders reassess risks from Poland


TOKYO/LONDON—The dollar on Wednesday traded just above multi-month lows against most majors as flows that had supported the safe-haven currency slowed after Joe Biden said a missile that caused an explosion in Poland may not have been fired from Russia.

NATO-members Ukraine and Poland claimed Tuesday that the blast that killed two Polish border guards was likely caused Russian-made missiles. This raises concerns about an escalation.

Biden stated that the weapon was not likely to have been fired by Russia. However, the investigation was ongoing.

Russia denies that it caused the explosion. NATO ambassadors will hold an emergency meeting, with a news conference scheduled for 11.30 GMT on Wednesday.

At $1.0399, the euro was 0.47 per cent higher than its previous high. It was heading back towards the four-and-a-half month high of $1.0481 it touched a day earlier after U.S. producer price inflation was below expectations, reinforcing bets that last week’s cooler-than-expected consumer price inflation was not a one-off.

After the news of the explosions in Poland, traders fled to the safety and security of the dollar. This caused falls in equity prices.

Kim Mundy, senior currency strategist at Commonwealth Bank of Australia, said that the euro would…

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