Yen Extends Gains against the Dollar as Ukraine Crisis Escalates

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Currency Trading Fundamentals: Japanese Data Boosts Yen - June 9, 2014

Yen Extends Gains against the Dollar as Ukraine Crisis EscalatesThe yen hit a weekly high against the U.S. dollar as the West discussed the possibility of rolling out more sanctions against Moscow, sending investors scampering for the safe-haven currency.

The yen rose 0.2 percent to trade at 102.12 a dollar at noon trade in New York after earlier touching a high of 101.96, its strongest level since April 17. It has gained 0.3 percent against the dollar this week.  The Japanese currency also rose 0.2 percent to 141.28 per euro, while the dollar was trading at $1.3840 a euro.

“Russian troops are ready to go into Ukraine — looks like it can happen during the weekend,” Peter Kinsella, a currency strategist at Commerzbank AG in London told Bloomberg. “The market in general is seeing some mild risk aversion.”

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The yen has gained 2.7 percent in 2014, making it the third best-performing currency out of the 10 advanced-economy currencies analyzed by Bloomberg Correlation-Weighted Indexes. The Bloomberg Dollar Spot Index, which monitors the dollar against 10 major peers, remained slightly unchanged at 1,010.84 after earlier touching 1,012.74, its strongest mark since April 8.

The Indian rupee advanced as local firms repatriated profits to benefit from the weak currency that had touched its lowest level in one month. The rupee advanced 0.8 percent to 60.6250 a dollar. The Brazilian real plunged 1 percent to 2.2367 per dollar, halting a three-day advance. This was after the central bank’s decision not to conduct an auction to roll over foreign exchange swaps.

The rouble fell 0.8 percent to 42.2824 against a basket of currencies tracked by the Russia’s central bank after S&P downgraded the country’s credit rating to BBB-, just a notch above junk status. The currency had earlier declined 0.3 percent on Thursday. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com