3 currencies to benefit as the Russian invasion of Ukraine continues

The global economy is going through a rough patch as the Covid-19 pandemic eases and the Russian invasion of Ukraine continues. As a result, some currencies like the Russian rouble and the euro have all crashed. Here are some currencies to buy amid the crisis.

US dollar

The US dollar has done relatively well during the invasion of Ukraine. The dollar index, which tracks the currency against other peers like the euro, sterling, and Swiss franc, has been in a strong bullish trend lately. It has risen by over 4.75% from its lowest level this year and is approaching the key resistance level at $100.

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There are two main reasons why the DXY index has jumped sharply. First, there is the overall rush to its safety as the invasion continues. There are concerns about Putin’s end goal considering that his troops have faced significant opposition in the country. Some analysts believe that he will lash out and continue shelling residents.

Second, recent data shows that the US economy is doing well but inflation is a challenge. Therefore, the Federal Reserve will likely start hiking interest rates this month.

Australian dollar

The Australian dollar has defied odds lately. The AUD/USD pair has jumped to the highest level in a few months as the crisis continues. Analysts expect that the country will benefit modestly as the Russian invasion of Ukraine continues because of its vast natural resources.

For example, Australia is a leading producer of natural gas. This means that the country will likely see more demand in the coming months as countries avoid those from Russia. Also, the Australian dollar is often viewed as a commodity currency. The Bloomberg Commodities Index has risen to the highest level in more than 12 years.

New Zealand dollar

The New Zealand dollar has been in a strong bullish trend in the past few weeks. The NZD/USD pair is trading at 0.6900, which is about 5.5% above the lowest level this year. It is trading at the highest point since last year.

Like the Australian dollar, the New Zealand dollar is often seen as a commodity currency. For one, its economy is mostly supported by key commodities like in the dairy industry. The country is also often more immune to what is happening in other regions. At the same time, there is a likelihood that the Reserve Bank of New Zealand will embrace a more hawkish tone.

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