The yen fell versus 16 major peers as concern eased about tensions in Ukraine after reports last week that Russia’s warplanes ended drills and the nation is seeking to mediate between Kiev and rebel forces.
The dollar held gains from last week against most Group of 10 currencies as traders added to bullish bets on the greenback at the fastest pace in more than a year. Demand was bolstered before a report this week predicted to show retail sales grew for a sixth month. Federal Reserve Vice Chairman Stanley Fischer speaks today, followed by remarks Aug. 13 from New York Fed President William Dudley.
“If the Ukrainian government and pro-Russian separatists engage in a dialogue, stock gains and a rise in Treasury yields could spur some dollar buying,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “The yen is likely to come under selling pressure as geopolitical risks take a back seat.”
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