Euro surges on hopes for Ukraine peace deal
Photo: Euro rises against the dollar (Getty Images)
The euro reached a new high in a week and a half amid a weakening dollar. Investors are watching peace talks on Ukraine, Reuters reports.
The euro rose 0.14% to $1.1677, its highest level since July 28, while a possible peace agreement in Ukraine is seen as a positive factor for the single currency.
Ukrainian President Volodymyr Zelenskyy said on Thursday that he plans to discuss progress towards peace with Germany, France, and Italy.
"Sectors to benefit (from a peace deal) should be European consumers, growth-sensitive and construction-related sectors," said Mohit Kumar, an economist at Jefferies.
According to him, this should also be a positive factor for Eastern Europe, as most of the recovery efforts are likely to be directed through the economies of Eastern European countries.
The dollar index, which measures the US currency against a basket of major currencies, fell to a new 1.5-week low of 98.00, down 0.20% on the day.
Progress in negotiations
The Kremlin has confirmed that Presidents Vladimir Putin and Donald Trump plan to hold talks within the next few days. According to Putin's foreign policy aide Yuri Ushakov, Moscow and Washington have already agreed on the venue for the meeting.
"Together with our American colleagues, we are beginning to work on specific issues," Ushakov said. He did not specify where the meeting would take place.
The statement came the day after Putin held a nearly three-hour meeting with Trump's representative Steve Witkoff. The visit to the Kremlin took place amid US attempts to end the war against Ukraine.
Earlier, Trump threatened to impose secondary tariffs on buyers of Russian oil if Moscow did not agree to a ceasefire by August 8.
Ushakov also said that they had previously discussed the possibility of a meeting between Putin, Trump, and Ukrainian President Volodymyr Zelenskyy. However, Russia has not yet commented on this, focusing on organizing the summit with the US.
Meanwhile, Trump said that there is a very high probability of his meeting with Putin and Zelenskyy. He expressed hope for a ceasefire between the two countries.
According to Bloomberg sources familiar with the content of Trump's phone conversation with allies and Zelenskyy, the US President is optimistic about the chances of a ceasefire. The sources also claim that Trump suggested that Putin's willingness to negotiate in exchange for discussing territorial concessions.
