Euro Declines Amid Ukraine-Russia Tensions

The euro dropped against its major counterparts in the New York session on Wednesday, amid growing geopolitical tensions after Ukraine's use of Storm Shadow missiles supplied by Britain in Russia.

The strike came a day after Ukraine used U.S. missiles to strike military targets inside Russia.

The U.S. Embassy in Kyiv said it would stay closed Wednesday after receiving a warning of a potentially significant Russian air attack on the Ukrainian capital.

The precautionary step came after Russian officials promised a response to President Joe Biden's decision to let Ukraine strike targets on Russian soil with U.S.-made missiles — a move that angered the Kremlin.

The Greek and Spanish embassies in Kyiv have closed to the public today, after air raid sirens were activated in the Ukrainian capital several times overnight.

The euro weakened to a 5-day low of 0.8313 against the pound and a 6-day low of 1.0506 against the greenback, from an early high of 0.8358 and a 1-week high of 1.0609, respectively. The currency is seen finding support around 0.82 against the pound and 1.03 against the greenback.

The euro fell to a 6-day low of 1.4718 against the loonie and an 8-day low of 1.6197 against the aussie, off its early highs of 1.4803 and 1.6237, respectively. The next possible support for the currency is seen around 1.46 against the loonie and 1.60 against the aussie.

The euro edged down to 0.9305 against the franc and 163.15 against the yen, from an early high of 0.9365 and a 5-day high of 164.76, respectively. The currency may challenge support around 0.92 against the franc and 160.00 against the yen.

The euro reached as low as 1.7910 against the kiwi. If the currency falls further, it is likely to test support around the 1.78 region.