Dodd, OlgaFernández-Pérez, AdrianSosvilla-Rivero, Simon2026-03-012026-03-012022-09-14Applied Economics Letters, ISSN: 1350-4851 (Print); 1466-4291 (Online), Taylor & Francis, 31(1), 46-55. doi: 10.1080/13504851.2022.21231011350-48511466-4291http://hdl.handle.net/10292/20696We examine the relationship between currency and commodity returns around the invasion of Ukraine in February 2022. We find that the expected positive contemporaneous relationship between currency and commodity returns reverses and becomes negative during this period of extreme geopolitical risks. In addition to commodity returns, currency returns around the invasion of Ukraine are significantly affected by geopolitical factors, particularly geographic distance to the war. Our results indicate that a war between two major commodity-exporting countries significantly affects global currency pricing.This is a preliminary Working Paper version of an article published in Applied Economics Letters by Taylor & Francis. The Version of Record can be found at DOI: 10.1080/13504851.2022.212310138 Economics3502 Banking, Finance and Investment3801 Applied Economics35 Commerce, Management, Tourism and Services1117 Public Health and Health Services1402 Applied Economics1502 Banking, Finance and InvestmentEconomicsFinance3502 Banking, finance and investment3801 Applied economics3899 Other economicsForeign exchange ratescurrency returncommodity returnsUkraine–Russia wargeographic distanceJournal ArticleOpenAccess10.1080/13504851.2022.2123101