USD/JPY Surges to 102.20 as Russia Recalls Troops

The yen declined the most in seven weeks versus the dollar as Russian President Vladimir Putin said there’s no immediate need to send troops to Ukraine, damping demand for safer assets.

Japan’s currency dropped versus all of its 16 major counterparts, a day after being the biggest gainer, as Russia’s ruble rallied after Putin said he’d only send soldiers to Ukraine in an extreme case. U.S. Secretary of State John Kerry arrived in Kiev as the U.S. and its European allies seek ways to increase economic and diplomatic pressure on Putin. The Swiss franc weakened versus the euro.

“They’re backing down from the military threat and markets are taking that as a risk-on event, which is hurting haven currencies,” Fabian Eliasson, head of U.S. currency sales in New York at Mizuho Financial Group Inc., said in a phone interview. “Russia initially took an extremely strong stance against the Ukraine, and markets and risk were off yesterday.”

Bloomberg

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