Yen Gains on Ukraine Violence Pushes Investors towards Havens

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Yen Gains on Ukraine Violence Pushes Investors towards HavensThe yen posted its first weekly gain in three weeks as violence in Ukraine escalated, causing investors to rush for haven assets.

The Japan’s currency was slightly unchanged at 103.71 per dollar as of 8:57 am Tokyo time, compared to Thursday’s high of 103.56, the strongest level since August 22. The currency has advanced 0.2 percent against the U.S. currency this week. The yen also rose 0.7 percent this week against the euro, and was trading at 136.74 per euro.

“The yen saw buying across the board because of the situation in Ukraine.” Masato Yanagiya, a New York-based head of currency and money trading at Sumitomo Mitsui Banking Corp., told Bloomberg News. “Expectations of further ECB easing will continue to strengthen. The bias for euro selling is intact.”

Investors were jittery after the European Union and the U.S., along with Ukraine, condemned what they termed as Russian incursions as Kiev battled separatists, and hinted at further sanctions.

Meanwhile, the Philippine peso advanced after the country’s economy grew faster than expected in the second quarter. Philippines’ gross domestic product expanded at an annualized 6.4 percent in the three months through June from a year ago. Economists had expected a growth of 6.1 percent. The peso rose 0.6 percent to 43.597 per dollar at the close of trade in Manila.

The South Korea’s won jumped 0.4 percent to 1,013.88 per U.S. dollar this week due to strong economic data. The nation’s factory output grew 3.4 percent in July from the previous year, while the central bank announced a better-than-expected current-account surplus of $7.91 billion for the month of July.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