HomeForex UpdatesHopes of peace in Ukraine maintain euro afloat By Reuters

Hopes of peace in Ukraine maintain euro afloat By Reuters


FILE PHOTO: Euro, Hong Kong greenback, U.S. greenback, Japanese yen, pound and Chinese language 100 yuan banknotes are seen on this image illustration, January 21, 2016. REUTERS/Jason Lee

By Tom Westbrook

SINGAPORE (Reuters) – The greenback was stored on the again foot on Wednesday as hopes for a breakthrough in Russia-Ukraine peace talks lifted the euro, whereas the under-pressure yen steadied even because the Financial institution of Japan redoubled efforts to pin down bond yields.

The euro, battered in current weeks by worry of the financial fallout from battle in Ukraine and nerves in regards to the danger of the battle spreading west, touched a two-week excessive of $1.1137 in a single day, earlier than settling again to $1.1091 in Asia.

The frequent foreign money additionally jumped via its 200-day shifting common on the pound to hit a three-month excessive of 84.81 pence, whereas Russia’s rouble surged to a one-month high of 83.50 to the greenback.

Russia has promised to scale down army operations round Kyiv and Ukraine proposed adopting a impartial standing in an indication of progress at face-to-face negotiations in Istanbul.

U.S. officers poured just a little little bit of chilly water on hopes for a deal by warning the risk to Kyiv is not over.

“At the least the 2 sides are speaking,” mentioned Commonwealth Financial institution of Australia (OTC:) strategist Joe Capurso.

“The tentative excellent news in regards to the battle will profit the euro greater than some other foreign money given Europe’s proximity to the battle and reliance on Russian vitality,” he mentioned.

The temper additionally proved useful for risk-sensitive currencies such because the Australian and New Zealand {dollars}. They have been agency slightly below current peaks in morning commerce, with the at $0.7512 and at $0.6946. [AUD/]

The South Korean received, which just like the euro has been battered by the leap in oil costs since battle started simply over a month in the past, logged its greatest session in two years in a single day.

The yen, in the meantime, is preventing to discover a flooring round 123 to the greenback.

It’s on monitor for its worst month since November 2016, with a roughly 7% loss on the greenback as Japan’s central financial institution has doubled down on its dovish stance whereas the remainder of the world turns hawkish.

The BOJ, already within the midst of a four-day pledge of limitless bond shopping for to carry 10-year yields beneath its 0.25% ceiling, ratcheted up efforts by extending purchases alongside the curve in each instructions.

The ten-year Japanese authorities bond yield lastly fell a bit to 0.225%, although the yen held regular at 122.66 per greenback.

“Dangers stay tilted in the direction of the upside for at the moment. The 125.00 mark will proceed to be stage of topside resistance,” mentioned Sophia Ng, an analyst at MUFG Financial institution in Singapore.

========================================================

Foreign money bid costs at 0054 GMT

Description RIC Final U.S. Shut Pct Change YTD Pct Excessive Bid Low Bid

Earlier Change

Session

Euro/Greenback

$1.1096 $1.1086 +0.06% -2.43% +1.1100 +1.1080

Greenback/Yen

122.5650 122.8950 -0.26% +0.00% +123.2000 +122.5800

Euro/Yen

135.99 136.22 -0.17% +4.35% +136.6700 +136.0200

Greenback/Swiss

0.9306 0.9307 +0.03% +2.07% +0.9313 +0.9309

Sterling/Greenback

1.3097 1.3095 +0.01% -3.16% +1.3102 +1.3091

Greenback/Canadian

1.2503 1.2503 +0.03% -1.09% +1.2508 +1.2496

Aussie/Greenback

0.7510 0.7508 +0.04% +3.32% +0.7524 +0.7507

NZ

Greenback/Greenback 0.6944 0.6935 +0.13% +1.45% +0.6948 +0.6933

All spots

Tokyo spots

Europe spots

Volatilities

Tokyo Foreign exchange market information from BOJ

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

2 × three =

Most Popular