Forex Today: Dollar on the rise amid mounting tensions with Russia

What you need to take care of on Tuesday, March 15:

Market players tried to be optimistic about a diplomatic solution to the Russia-Ukraine conflict but were unable to do so. The positive sentiment diluted as the day went by, with Wall Street ending the day in the red after a strong opening.

The latest round of peace talks was paused, according to Ukraine’s negotiator Mikhail Podolyak, and will resume on Tuesday. A Kremlin spokesperson noted that “all the plans of Russia in Ukraine will be fulfilled in full and in the time frames outlined.”  Also, news hinted that Russia may halt wheat, corn, rye and barley exports, while Moscow and Belarus will stop paying for energy supply in US dollars, according to the latter’s Prime Minister.

At the same time, the EU Commission announced another wave of sanctions against Russian oligarchs and entities. The US, on the other hand, reported to its NATO allies that China is willing o provide military and economic support to Russia.

The greenback is up against most major rivals, although EUR/USD is marginally higher for the day, trading at around 1.0960. The GBP/USD pair pressures the 1.3000 threshold after reaching a fresh multi-month low of 1.3008.

Commodities edged lower, with gold falling down to $1,949.57 a troy ounce and finishing the day nearby. Crude oil prices were down, with WTI now trading at around $101.40 a barrel.

The risk-averse sentiment and easing gold and oil prices undermined demand for commodity-linked currencies. The AUD/USD pair pierced the 0.7200 level, while USD/CAD trades at around 1.2820.

The USD advanced against safe-haven rivals on the back of soaring US government bond yields. The yield on the 10-year Treasury note peaked at 2.145% and currently hovers around 2.13%. The USD/JPY pair trades at around 118.10, its highest since January 2017.

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