Yen Retreats as Geopolitical Tensions in Iraq & Ukraine Ease

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Yen Retreats as Geopolitical Tensions in Iraq & Ukraine EaseThe yen tumbled against its major peers as geopolitical tensions in Ukraine and Iraq eased, dampening demand for safer assets.

The Japan’s currency fell 0.2 percent to 137.09 per euro in midmorning trading in New York. The yen remained slightly unchanged at 102.36 per dollar, having earlier touched 102.66, its lowest level since August 5. The euro advanced 0.2 percent to trade at $1.3394, after earlier declining to $1.3333 on August 6, the weakest level since November 8 according to Bloomberg News.

The U.S. dollar declined after fresh applications for unemployment claims surged more than expected last week. The dollar tumbled after jobless claims rose by 21,000 to 311,000 in the week through August 9, the strongest level in six weeks, reported the Labor Department.

Meanwhile, the pound fell against its peers after Bank of England Monetary Policy Committee member David Miles disclosed that the central bank will retain the record-low interest rates for “a bit longer”. The UK currency remained slightly unchanged at $1.6692 after declining to $1.6658, the weakest level since April 8, and plunged 0.2 percent to trade at 80.25 pence per euro.

The euro traded near its weakest level in a year against the dollar after Germany’s economy shrunk in the second quarter and France’s economy stalled in the same period, spurring bets the European Central Bank will roll out further stimulus.

The 18-nation currency also plunged after the European Union’s statistics office reported today that euro-zone economy stagnated in the second quarter. This is a stark contrast to the first quarter, when it expanded 0.2 percent. The agency also announced that July’s annual inflation rate stood at 0.4 percent.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