The yen rallied as investors scampered for the safe-haven currency after NATO said Russia may order its troops to cross into Ukraine on the “grounds” of peacekeeping or humanitarian mission.
The Japan’s currency advanced 0.4 percent to trade at 102.16 per dollar at 12:43 p.m. in New York after appreciating by up to 0.8 percent, the fastest pace since April 8.
The US dollar edged on to touch its highest level in nearly eight months against the euro after a report indicated that German factory orders fell while Italy slid back to recession. The dollar remained slightly unchanged at $1.3377 per euro after earlier rising to $1.3333, the most since November 8. The shared currency fell 0.5 percent to 136.60 yen.
“People are finding very few places to hide,” Robert Sinche, a Stamford, Connecticut-based global strategist at Pierpont Securities LLC, told Bloomberg. “It’s partly Ukraine and risk aversion, but I also think some disquieting data out of Europe.”
Meanwhile, India’s rupee fell significantly as investors rushed to buy dollars after recent U.S. economic reports show the world’s biggest economy is strengthening. The rupee slid 1.1 percent to 61.5050 per dollar at the close of trading in Mumbai, the steepest decline since January 24.
Data on Tuesday showed that a U.S. non-manufacturing gauge surged in July at the strongest pace since December 2005 while industrial orders grew faster than expected. The rupee’s one-month implied volatility, which measures the expected shifts in the exchange rate used to assign price to options, rose 0.53 percentage point or 53 basis points to 7.23 percent. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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