Yen to Record First Weekly Gain in Three on Haven Demand

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Yen to Record First Weekly Gain in Three on Haven DemandThe yen looked set to record its first weekly gain in three weeks on escalating tensions in Ukraine that sent investors scampering for haven assets.

The yen remained slightly unchanged at 103.71 per dollar at 8:57 am Tokyo time on Friday, compared with Thursday’s high of 103.56, the highest level since Aug. 22. The currency has advanced 0.2 percent this week. The yen rose to 136.74 and looks set to rise 0.7 percent this week against the common currency.

“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.”

The U.S. and the EU, along with Ukraine, lambasted Russia for ordering incursions into Ukraine as Kiev battled separatist rebels. U.S. President Barack Obama warned that Russia may face more “costs and consequences”, indicating the possibility of further sanctions.

Meanwhile, the New Zealand dollar fell against its U.S. counterpart owing to strong U.S. economic data that boosted the outlook for recovery in the world’s biggest economy. The kiwi fell to 83.82 US cents as of 8 am in Wellington, compared with Thursday’s close of 83.91 US cents. The currency rose to 63.57 euro cents compared with 63.50 cents on Thursday as the market awaits key European inflation data on Friday. The kiwi traded lower at 89.58 Australian cents, down from 89.65 on Thursday, remained slightly unchanged at 50.52 British pence compared with 50.55 pence and plunged to 86.89 yen from 87.04 yen.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