Yen Advances the Most in Four Weeks on Geopolitical Tensions

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Yen Advances the Most in Four Weeks on Geopolitical TensionsThe yen surged the fastest pace in four weeks on fears that geopolitical tensions from Ukraine to the Middle East may spur demand for safe assets.

The Japan’s currency rose 0.6 percent to 102.04 per dollar at the close of trade in New York, the fastest weekly advance since July 11. The currency also touched 101.51, the highest level since July 24. It rose 0.7 percent to trade at 136.83 against the euro after touching, the highest level since November 21.

“Swiss franc and yen have definitely outperformed this week,” Lennon Sweeting, a dealer at the broker and payment provider USForex Inc in San Francisco, told Bloomberg. “Sterling is down big time at the moment. It’s at a two-month low and all the technicals are bearish, which really is not in line with expectations that would have been in place a month or two ago.”

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The euro fell 0.1 percent to close at $1.3410, its fourth weekly drop and the longest decline since the five weeks through March 8.  The shared currency fell after economists in a Bloomberg poll estimated that the bloc’s gross domestic product expanded 0.1 percent in the second quarter, much slower than the official 0.2 percent growth in the first quarter.

The allure for havens was also brought to the fore after the Swiss franc rose by up to 0.6 percent on Friday, the fastest gain since June 5, bringing its total weekly advance to 0.1 percent to 90.54 centimes per dollar.

The Canada’s dollar closed the week 0.5 percent lower at C$1.0973 for its third weekly decline. The currency fell after Statistics Canada reported that employers added an additional 200 workers against the forecasted 20,000 workers in a Bloomberg poll. The jobless rate slid to 7 percent from 7.1 percent after individuals exited the labor market. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com