The Japanese yen rallied against the US dollar yesterday and continue to gain today as the political turmoil in Ukraine feeds the risk-negative mood on financial markets. The currency also rallied against the euro and the Great Britain pound.
The political tension intensified as the separatists in Crimea were speaking that the region should leave Ukraine and perhaps join Russia. Russian military forces started exercises in the western regions of the country. The chances of war are perceived to be slim as of now, but the threat of conflict escalation still fuels fears, making investors to stick to safer assets.
The yen gained on the dollar also because of poor economic data from the United States. The Japanese currency rallied versus the euro on speculations that the European Central Bank will add stimulus on the next week’s policy meeting.
USD/JPY declined from 102.11 to 101.86 as of 2:31 GMT today. EUR/JPY dropped from 139.98 to 139.61 and GBP/JPY went down from 170.41 to 169.94.
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