USD/EUR strengthens on Ukraine tensions, dollar gains at 1-week high

The dollar index rose 0.38% to 102.20, reaching a one-week high as geopolitical tensions surrounding Ukraine dampened risk appetite and boosted safe-haven demand. EUR/USD dropped 0.3% to 1.0810 after Ukrainian President Zelenskyy rejected territorial concessions to Russia, diminishing hopes for near-term conflict resolution. The euro faced additional pressure from concerns about European energy security and potential economic impacts from prolonged tensions. Flight-to-quality flows benefited the dollar and Japanese yen, with USD/JPY holding steady at 149.50. Technical analysis shows EUR/USD breaking below the 1.0830 support level, opening the path toward 1.0800. The dollar's strength was broad-based, with the DXY index breaking above its 20-day moving average at 102.10. Traders remain cautious ahead of any developments in Eastern Europe that could further impact currency markets and risk sentiment.