Yen Advances as Ukraine Tensions Force Investors to Buy Haven Assets

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Yen Advances as Ukraine Tensions Force Investors to Buy Haven Assets The yen posted its first gain against the dollar in seven days after investors scampered for safe haven assets ahead of a scheduled meeting between Ukrainian and Russian presidents.

The Japan’s currency rose 0.1 percent to trade at 103.93 per dollar at 10:01 am New York time after earlier declining to 104.49 on Monday, its lowest level since January 23. It also surged 0.1 percent to 137.15 per euro. The euro remained slightly unchanged at $1.3199, rebounding from a low of $1.3179, the weakest in nearly a year.

The dollar fell against most of its major counterparts after US durable goods orders adjusted for transportation plunged. The orders tumbled 0.8 percent in July, compared with economists’ expectation of a 0.5 percent gain. However, total orders grew 22.6 percent, a record high, due to an upsurge in commercial aircraft orders.

Meanwhile, the New Zealand dollar touched a six-month low after the country’s trade deficit in July grew more than expected. The kiwi traded at 83.42 US cents after earlier falling to 83.11, the lowest level since February 27.

“New Zealand’s July trade balance disappointed,” Joseph Capurso, a currency strategist at Commonwealth Bank of Australia based in Sydney, told Bloomberg News. “Downward pressure on the New Zealand dollar remains, particularly given speculation of RBNZ intervention.” RBNZ is the Reserve Bank of New Zealand.

The Turkish Lira advanced 0.6 percent versus the U.S. dollar on speculation the central bank officials will retain the benchmark repurchase rate at 8.25 percent when they meet on Wednesday, signaling it will halt implementing further monetary easing policies. 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