Yen & Franc Surge on Escalating Tensions in Ukraine

0
130

Yen & Franc Surge on Escalating Tensions in UkraineThe world’s premier haven currencies, the Swiss franc and the yen rallied after Ukraine announced that its soldiers had launched an offensive against a military column that entered into the country from Russia, destroying “part” of it.

The yen gained 0.1 percent to trade at 102.33 per dollar as of 1:37 p.m. in New York, paring its weekly decline to 0.3 percent. The yen plunged 0.1 percent to trade at 137.04 per euro. The 18-nation currency gained 0.2 percent to $1.3392 after earlier touching $1.3333 on August 6, its weakest level since November 8. The franc advanced 0.4 percent to steady at 90.30 centimes per dollar.

“Dollar-yen is reacting to the Ukraine headline — geopolitical risk hasn’t really been in the picture this week until now,” Charles St-Arnaud, a senior economist at Nomura Securities International Inc in London, told Bloomberg News. “It’s one of those that’ll create volatility, depending how it’ll develop. We still need to wait to hear from Russia to see what’s going on.”

Emerging market currencies declined after Ukraine army spokesman Andriy Lysenko said that the military had attacked Russian vehicles that entered the country overnight via a rebel-controlled part of the country’s border with Russia. However, Russia termed the statements as based on “some fantasies”, reported the local news outlet RIA Novosti, citing the border guard unit of the Federal Security Service.

Meanwhile, the Malaysian ringgit surged 0.6 percent to trade at 3.1533 per dollar after advancing to 3.1428, the strongest level since October 2013. The currency advanced after the central bank announced that the economy expanded 6.4 percent in the second quarter from a year ago. 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