The U.S. dollar, edged 0.2% lower at 95.938 against a basket of currencies including the euro, as investors await further developments in the crisis
Russian President Vladimir Putin ordered troops to two breakaway regions in Ukraine, sending the euro one-month volatility to its highest level since November 2020
Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent on Monday
Euro, which was up 0.6% at one stage during early London trading, slowly abandoned those gains and was up a meagre 0.1% at $1.1336
The euro which was gaining close to 0.6% at one stage during morning trading, slowly abandoned those gains and was up a meagre 0.13% at $1.1334 as of 1224 GMT
S&P 500 stock futures rose 0.5%. Nasdaq futures gained 0.3%, having been down more than 1%. U.S. markets are on holiday on Monday, but futures still traded
The standoff on Europe's eastern edge is one of the deepest crises in East-West relations for decades, and markets had rallied in relief at earlier Russian statements about a military pullback
After the news of Russian troops near Ukraine returning back to their bases, Euro marches higher on Tuesday, almost wiping out Monday losses, while Yen still struggles.
Currencies broadly traded little changed as the market awaits U.S. consumer price data on Thursday
Euro zone bond yields edged lower on Tuesday but many in the currency market were still concerned that a sharp rise in bond yields could weigh on the prospects of a broad-based economic recovery
The new rate expectations for both the Fed and ECB pit the dollar and euro against each other as to which will gain an upper hand
Meanwhile, in cryptocurrency markets, Bitcoin held around a two week high
The European single currency was up 2.86% for the week, its best weekly gain since March 2020, during the early stages of the pandemic.
The euro was marginally weaker at $1.1296, after rising around 2% in the last three sessions on expectations of a hawkish shift from the ECB.
Consumer prices jumped 5.1% from a year ago in January, up from 5% in December.
TOKYO (Reuters) - The euro hovered near its weakest in a month versus the safe-haven dollar and yen on Wednesday as traders fretted over a potential military conflict in Ukraine and the possibility of accelerated Federal Reserve policy tightening.
Tensions remained high after NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets
Traders were unmoved by euro zone inflation rising to 5% in December, a record high figure that was above analysts' consensus forecast for 4.7%
The rise was led by a surge in energy prices, according numbers released Friday by the European Union's statistical office
Major currencies held within well-worn trading ranges, however, as a surge in cases of the Omicron coronavirus variant forced countries to reimpose restrictions