Dollar Hits 20-Year High After Putin Mobilizes Troops And Threatens Nuclear War

Breaking Business Dollar Hits 20-Year High After Putin Mobilizes Troops And Threatens Nuclear War Robert Hart Forbes Staff I cover breaking news. Following New! Follow this author to stay notified about their latest stories. Got it! Sep 21, 2022, 08:13am EDT | Share to Facebook Share to Twitter Share to Linkedin Topline The U.

S. dollar leapt to a new 20-year high on Wednesday after Russian President Vladimir Putin drafted 300,000 reservists to bolster his flagging invasion of Ukraine and threatened to use nuclear weapons to protect Russia’s interests, a major escalation that has rocked markets as Moscow prepares to annex swathes of occupied territory. The U.

S. dollar hit a 20-year high after Putin mobilized more Russian troops. AFP via Getty Images Key Facts The Dollar Index, which measures the U.

S. dollar’s value against six other major currencies, jumped nearly 0. 6% to 110.

87 following the news on Wednesday, its highest level since 2002. European currencies fared less well, however, with Britain’s pound sterling falling as much as 0. 7% against the dollar and dropping to a 37-year low.

The euro, which fell below parity with the dollar this summer, fell 0. 7% to a two-week low. Safe haven assets also jumped following the news, with the Japanese yen adding 0.

3% against the dollar and gold jumping 0. 6%. What To Watch For The Federal Reserve is expected to announce a sharp hike in interest rates on Wednesday in an attempt to contain soaring inflation.

It is also expected to announce further plans to hike the rate in coming months, in line with central banks around the world that are also fighting rising inflation and a mounting cost of living crisis. News Peg Putin announced plans for “partial mobilization” of army reserves in a televised address on Wednesday morning, doubling down on the invasion after weeks of setbacks and successful counter offensives from Ukrainian forces. It is Russia’s first mobilization effort since World War 2 and a clear sign from the Kremlin that the invasion is not going according to plan.

It follows reports of heavy losses, stunning retreats, swathes of lost territory and serious supply chain issues as global sanctions bite down on the Russian economy. Putin framed the invasion as a fight pitting Russia against the West and set the stage to formally annex parts of Ukraine. He acknowledged a series of upcoming referendums in occupied territories to join Russia as legitimate, contrary to Kyiv and Western allies, who have suggested they will not recognize any vote or annexation stemming from them.

Putin reiterated threats that Moscow would defend its interests by any means, including with nuclear weapons, stating that he was not bluffing and that Russia has “lots of weapons” with which to respond to threats. Further Reading Putin Taps 300,000 Reservists To Fight In Ukraine As He Backs Referendums In Russian Occupied Territories (Forbes) Follow me on Twitter or LinkedIn . Send me a secure tip .

Robert Hart Editorial Standards Print Reprints & Permissions.