The euro was last at $1.1218, up 0.24%, having plunged to as low as $1.1106 on Thursday, its lowest since May 2020
Russia's rouble tumbled overnight, falling to a record low of 89.986 per dollar, before recovering a little
The euro fell as much as 1.2% to $1.1164, the lowest level since Jan. 31
Riskier commodity-linked currencies also tumbled, succumbing to worsening risk sentiment after earlier in the week proving resilient due to high commodity prices.
The euro was up 0.1% against the dollar at $1.1340 after hitting its lowest on Tuesday since Feb. 14 at $1.1286
Away from the threat of a full-scale Russian invasion of Ukraine, the New Zealand dollar jumped 0.52% after Reserve Bank of New Zealand raised ROI, stating more tightening could be necessary.
The U.S. dollar, edged 0.2% lower at 95.938 against a basket of currencies including the euro, as investors await further developments in the crisis
Russian President Vladimir Putin ordered troops to two breakaway regions in Ukraine, sending the euro one-month volatility to its highest level since November 2020
Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent on Monday
Euro, which was up 0.6% at one stage during early London trading, slowly abandoned those gains and was up a meagre 0.1% at $1.1336
The euro which was gaining close to 0.6% at one stage during morning trading, slowly abandoned those gains and was up a meagre 0.13% at $1.1334 as of 1224 GMT
S&P 500 stock futures rose 0.5%. Nasdaq futures gained 0.3%, having been down more than 1%. U.S. markets are on holiday on Monday, but futures still traded
The standoff on Europe's eastern edge is one of the deepest crises in East-West relations for decades, and markets had rallied in relief at earlier Russian statements about a military pullback
After the news of Russian troops near Ukraine returning back to their bases, Euro marches higher on Tuesday, almost wiping out Monday losses, while Yen still struggles.
Currencies broadly traded little changed as the market awaits U.S. consumer price data on Thursday
Euro zone bond yields edged lower on Tuesday but many in the currency market were still concerned that a sharp rise in bond yields could weigh on the prospects of a broad-based economic recovery
The new rate expectations for both the Fed and ECB pit the dollar and euro against each other as to which will gain an upper hand
Meanwhile, in cryptocurrency markets, Bitcoin held around a two week high
The European single currency was up 2.86% for the week, its best weekly gain since March 2020, during the early stages of the pandemic.
The euro was marginally weaker at $1.1296, after rising around 2% in the last three sessions on expectations of a hawkish shift from the ECB.