The Japanese Yen eased from its recent highs versus the common currency Euro and the U.S. Dollar as investors’ concerns over the crisis in Ukraine appeared to be waning, at least for the present. Both the European Union and the U.S. imposed some economic sanctions against Russia for the part it’s played in the situation but analysts believe those sanctions to be too limited to play any significant role in escalating tensions. As a result, demand for safe haven currencies like the Japanese Yen and Swiss Franc have temporarily evaporated.
As reported at 11:21 a.m. (JST) in Tokyo, the USD/JPY pair traded at 101.76 Yen, close to Friday’s recent low of 101.20 Yen. The greenback is getting some broad support from a rise in U.S. Treasury yields now that demand for U.S. debt has also receded. The EUR/USD traded at $1.3934, a gain of 0.1% and moving close to last Thursday’s multi-year peak; the EUR/JPY likewise edged higher to 141.79 Yen, a gain of 0.1%.
Fed to Draw Market Focus
Markets will refocus their attentions to the West on the U.S. Federal Reserve where a monetary policy decision is expected to be released tomorrow at the conclusion of the policy meeting which begins later today. Analysts believe that the policymakers will continue to scale back monthly asset purchases, and may also revise its outlook to reflect a possible change in the economic conditions by which monetary policy might be tightened.