The dollar rose on Monday as investors rushed into safe-haven assets on fears that Russia is preparing to invade Ukraine.
In the Sultanate, the dollar surge also brought some news to cheer for the expatriate community as one Omani Riyal on Monday fetched 196 Indian rupees, 226 Bangladeshi takas, 453 Pakistan rupees, 133 Philippines pesos, 524 Lankan rupees, 40 Egyptian pounds, and 307 Nepal rupees.
The dollar index rose 0.4% to 96.328 on Monday, its highest since February 1.
Euro-dollar one-month implied volatility was at 7.6% , from below 6% at the end of January.
The rouble was 0.1% lower at 77.20 against the dollar, after tumbling to its lowest since January 28 on Friday as investors ditched Russian assets.
Commerzbank analysts pointed out that “European dependency on Russian energy makes the cyclical economic performance of the eurozone particularly vulnerable in case of an escalation of the conflict in Ukraine.”
The euro was down 0.3% at $1.1318, after hitting its lowest level since Feb. 3 at $1.1305.
The euro weakened on Friday when a rush into safe-haven assets overshadowed expectations for monetary policy tightening from the European Central Bank.
ECB president Christine Lagarde had also dampened some of the bullish euro sentiment by reiterating that any policy action will be gradual.
The U.S. Federal Reserve will release its January meeting minutes on Wednesday, but analysts said central bank action was unlikely to return to the spotlight until the risk of an escalation over Ukraine recedes.
