By: Dailyforex.com
Once again, jittery FX players have pushed the Japanese Yen higher, now beginning the trading week at the high of its recent trading range as markets seek out safe haven investments in the wake of an escalation of geopolitical tension in the Crimean section of the Ukraine. A recent vote showed that the majority of residents of Crimea, a staggering 90%, would prefer to join Russia; that outcome was quickly denounced as a sham by the Ukraine government as well as those in the West.
As reported at 12:09 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 101.31 Yen, while the EUR/JPY dipped slightly to 140.97 Yen. At $1.3908, the EUR/USD remained close to last week’s 2½ year peak which occurred on Thursday just after the ECB cautioned investors that the strengthening Euro posed a threat to the Eurozone’s economic recovery.
Russia Preparing for Possible Sanctions?
Barack Obama, the U.S. President, said that the government rejected the referendum results and cautioned Russia that sanctions would be imposed if the Russian government acted, however it appears that Russia may be preparing for just such an event as a record fall in foreign government holdings of U.S. Treasuries has led to speculation that the Russian government could be reducing its reserves.