Emerging-market currencies rose the most in more than a week as an easing of tensions in Ukraine drives investors’ demand for higher-yielding assets.
The ruble gained for the first time in seven days as Interfax news service reported that Russian troops on the Ukraine border have returned to their base. The yen fell against most of its 31 major peers as President Barack Obama issued sanctions on Russian individuals and companies. The euro gained as European Central Bank President Mario Draghi told German lawmakers quantitative easing isn’t imminent, according to a euro-area official. The pound rose to a four-year high.
“The way I’d put it is, it wasn’t as risk-negative as it could have been,” Alan Ruskin, the global head of Group of 10 foreign exchange at Deutsche Bank AG in New York, said in a telephone interview. “The day is still young. We have yet to see the Russians respond — things are far from calm in Ukraine.”