Darkening skies across sovereign credit markets have apparently hit Ukraine. The FT reports that they have applied to the IMF for an emergency $2 bln loan. Portugal, Spain, Dubai, Greece and now Ukraine have all been nicked by credit concerns in recent weeks and traders fear that there are more dominoes yet to tumble.
The dollar performed very strongly amid last year’s global credit crisis. Must assume it will do so again as sovereigns feel the after-effects of that crisis more than a year later.
Also adding to concerns are the potential impacts on European banks from a fresh crisis in Ukraine, where they are more heavily exposed than their other global counterparts.
EUR/USD has fallen as far as 1.4652 so far, and trades at 1.4659 now.
