The Russian invasion of Ukraine early on Thursday morning has, aside from the ruble, so far made only limited impact on currency markets. The US dollar and other safe havens rose sharply on news of the invasion, accelerating the shifts over the previous couple of weeks as tensions in Ukraine escalated. But safe haven flows have partly unwound over the past 24 hours as risk sentiment has recovered, perhaps because the sanction packages unveiled by the US, EU, and UK were less extensive than might have been expected, and excluded the crucial Russian energy sector. Expectations that the war may end swiftly, either by military means or diplomatic ones, also appear to be growing.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services