The U.S. Dollar steadied during Friday’s Asian trading session against both the Japanese Yen and the common currency Euro as investors’ risk appetite improved and gave the greenback the lift it needed to recoup earlier losses. Analysts warn that the greenback is likely to remain under some pressure, perhaps even until May when the country holds elections. However, if the geopolitical worries there escalate to a point at which safe haven currencies are actively sought, that will put the greenback firmly behind both the Swiss Franc and the Japanese Yen, though any setbacks are seen as temporary at best so long as there is no real military conflict.
As reported at 11:00 a.m. (JST) in Tokyo, the USD/JPY pair traded at 102.09 Yen, edging up from yesterday’s trough of 101.72 Yen as investors weighed the possibility that Russia might allow military action in the Ukraine. The 8th consecutive rise in Japan’s CPI had little effect on the Yen, with prices rising 1.3% on a year-over-year basis. The EUR/USD was relatively unchanged at $1.3707, moving not far from yesterday’s low of $1.3643.
Eurozone Inflation Could Pressure ECB
Inflation data is also due out later today for the Eurozone, with analysts expecting a fall in February numbers to 0.7% from 0.8%, which might put the European Central Bank on the defensive, adding pressure on Mario Draghi to consider tweaking monetary policy at next week’s meeting.