The yen weakened, dropping most against its higher-yielding peers, as sanctions on Russia that failed to penalize the country’s major companies or banks boosted investors’ risk-taking appetites.
The euro snapped a five-day gain against the dollar after German inflation accelerated less than economists forecast, increasing pressure on the European Central Bank to add stimulus. South Korea’s won advanced to the highest since 2008 as a current-account surplus widened. The Canadian dollar rose the most in a month versus the greenback as traders who bet against the currency’s decline were forced to rewind orders.
“Ukraine remains a risk, and the market is aware of that, but the market doesn’t believe it’s going to turn into a detrimental situation,” Sireen Harajli, a strategist at Mizuho Bank Ltd. in New York, said in a phone interview. “It just seems to me the market is looking at the Ukraine scenario as not very likely to blow up.”