US dollar falls amid talks between Trump and Putin to end war
2 Min Read
The prospect of peace talks saw a shift in the global markets, with the more significant International currencies like the Yuan and the Euro witnessing a rise against the dollar.
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President Donald Trump, left, and Russian President Vladimir Putin shake hands at the beginning of a meeting at the Presidential Palace in Helsinki, Finland, July 16, 2018. (AP)
The price of the US dollar is witnessing a drop against most major currencies as hopes rose for an end to the Ukraine war following talks between US President Trump and Russian President Vladimir Putin regarding negotiations to end the war.
The Euro witnessed a rise up to $1.044 going into a third day of increasing in value in its longest gain streak of this year, with short-term sentiment going from negative to neutral in the options market, as traders go for bets on further gain on Wednesday.
Hedge funds have been pulling back on their bets that the dollar will rise against the euro, according to European traders, with the dollar's value dropping by 0.3% before bouncing back slightly after the Euro had been dragged down recently by the European Central Bank's push for interest-rate cuts.
Morgan Stanley strategists say that while short-term interest rates may not help the euro, longer-term bond yields could move closer together, as even a partial shift could push the euro up to $1.08, with Asian currencies benefitting from the shift in trades with offshore Yuan rising 0.4% against the dollar reaching a one-week high.
Hopes for an end to the Ukraine War on the rise
US President Donald Trump unveiled on Wednesday that he had a "lengthy and highly productive" phone call with his Russian counterpart Vladimir Putin where they covered a broad range of topics, the most important of which is the Russian-Ukraine war.
"I just had a lengthy and highly productive phone call with President Vladimir Putin of Russia. We discussed Ukraine, the Middle East, Energy, Artificial Intelligence, the power of the Dollar, and various other subjects," Trump said in a post on Truth Social.
He added that he and Putin had agreed to initiate negotiations immediately to find a peaceful solution to the war in Ukraine and that he would inform Ukrainian President Volodymyr Zelensky of the progress made with the Russian president.
The Kremlin confirmed Trump's statements, adding that the phone call lasted an hour and a half.
