Market News

Mounting tension in Ukraine has sent FX players flooding back to the safe haven Japanese Yen.

The New Zealand Dollar soared broadly during the Asian trading session following comments made by officials of the Reserve Bank of New Zealand which left no room for uncertainty that the central bank intends to hike interest rates further in the near future in an effort to stave off inflationary pressures.

As reported at 1:20 p.m. (JST) in Tokyo, the AUD/USD dropped 0.9% to trade at $0.9286, moving well off the 5-month peak struck earlier this month when the pair hit $0.9461.

The U.S. Dollar Index remained close to a 2½ week peak versus its major rivals in spite of a subdued trading session in the overnight hours following the closure of a number of financial markets for the Easter weekend.

In light Asian trading as a result of the holiday weekend, the U.S. Dollar firmed and steadied on Monday though additional gains are likely limited as a situation in Ukraine is keeping FX traders on the edge.

The safe haven Yen edged lowered and struck a fresh 10-day trough versus the greenback following the release of upbeat economic data from the U.S. and on growing hopes that a diplomatic solution will be found for the Ukraine’s geopolitical problems.

Get all the information you need for the Easter trading schedule here.

The Japanese Yen remained close to a 1-week trough versus its U.S. counterpart after easing overnight in the wake of a global equities rally which reduced overall appetite for safe haven assets.

Earlier in the Asian trading session, jittery investors had moved well away from commodity-linked currencies as investors awaited the release of several data pieces out of China which would hopefully provide additional clues as to the Chinese economic recovery.

The release yesterday of unexpectedly improved U.S. retail sales figures helped to push the U.S.

The Euro remains on the defensive as the trading week opened in Asia after the European Central Bank once again repeated its commitment to ensuring that deflation doesn’t get a foothold by remaining ready to provide easing as and when needed.

The U.S. Dollar Index remains poised to record the largest single week’s decline in value in as much as nine months after FX players contemplate the latest Federal Reserve minutes which clearly indicate that an increase in interest rates is no longer a certainty in early 2015.

The U.S. Dollar Index held near to a 3-week trough following the release of the latest policy minutes from the U.S. Federal Reserve Bank which disappointed investors hoping that the greenback would soon be experiencing a revival.

The U.S. Dollar Index, used by investors worldwide to assess the greenback’s strength versus its rivals, fell and stayed close to a 3-week trough during Wednesday’s Asian trading session.

Asian stocks plummeted for the second day on Tuesday, despite the fact that the Asia-Pacific stock gauge hit a two month peak only last week.