USD/JPY below 102 on Demand for Less Risky Assets

The yen climbed the most in three weeks against the dollar as reports that Russian President Vladimir Putin put fighter jets on combat alert amid rising tensions in Ukraine boosted demand for less-risky assets.

The Swiss franc, another traditional haven, rose to the strongest level since April versus the euro. The 18-nation shared currency erased losses against the dollar before data on euro-area core consumer prices releases tomorrow. Russia’s ruble declined to a record, and Ukraine’s hryvnia weakened through 11 per dollar for the first time amid deepening tension in the region. Federal Reserve Chair Janet Yellen said the central bank has been successful in lowering long-term rates.

“Putin is conducting military exercises and putting Russian forces on high alert,” said Richard Franulovich, the chief currency strategist for the northern hemisphere at Westpac Banking Corp. “That’s risk-negative.”


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