The Japanese Yen steadied against its main adversary, the U.S. Dollar, despite heavy losses incurred on Tuesday as investors’ risk appetite improved following the easing of geopolitical tensions in Ukraine.
Demand for safe haven assets has increased significantly, pushing the Japanese Yen higher as a geopolitical continues to escalate in Ukraine following the mobilization of troops to counter those sent in by the government of Russia.
The U.S. Dollar steadied during Friday’s Asian trading session against both the Japanese Yen and the common currency Euro as investors’ risk appetite improved and gave the greenback the lift it needed to recoup earlier losses.
With safe haven demand rising, the U.S. Dollar Index remained close to a 2-week peak as geopolitical tensions in the Ukraine escalate with Russia implying that they were militarily ready to intervene if necessary, an implication that the U.S. warned would be considered a “grave mistake.”
The Japanese Yen steadied during the Asian trading session today as FX players shunned the greenback in the wake of falling treasury yields as a result of unexpectedly bleak economic data from the United States.
The U.S. Dollar firmed versus its major peers during Tuesday’s Asian trading session even as FX traders await further evidence that the economic recovery remains on track and reaffirms that the Federal Reserve’s decision to taper is the appropriate one.
The Euro steadied versus its main rival, the U.S. Dollar, after experiencing volatility during the unrest in the Ukraine which eventually saw the president removed from office and a transformation of the government.
Better than expected labor data which showed that fewer Americans had filed for unemployment relief last week helped to lift the U.S. Dollar as investors consider that the way forward for the Federal Reserve’s tapering plans are more certain.