USD/JPY Drops Below 103.80 as Ukraine Tensions Spur Haven Demand

The yen headed for its first weekly advance in three weeks as increasing tension between Russia and Ukraine spurred investor demand for haven assets.

Japan’s currency traded 0.1 percent from a one-week high versus its U.S. peer after a report today showed the inflation rate was unchanged in July after slowing the previous month. The euro was set for a seven-week slide, the longest stretch in more than a decade, as economists forecast data will signal consumer prices gained at a slower pace before European Central Bank officials gather next week. New Zealand’s dollar weakened after building permits rose less than analysts expected.

“The yen saw buying across the board because of the situation in Ukraine.” said Masato Yanagiya, the head of currency and money trading in New York at Sumitomo Mitsui Banking Corp., a unit of Japan’s second-biggest financial group by market value. “Expectations of further ECB easing will continue to strengthen. The bias for euro selling is intact.”

Bloomberg

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