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USD/JPY edges up as Ukraine crisis takes a breather

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Investing.com -

Investing.com - The dollar perked up against the yen on Wednesday after Russian President Vladimir Putin said he would do all he can to diffuse the crisis in neighboring Ukraine, though comments Federal Reserve Chair Janet Yellen capped the greenback's advance.

In U.S. trading, USD/JPY was up 0.05% and trading at 101.73, up from a session low of 101.43 and off a high of 102.01.

The pair was expected to test support at 101.42, the low from April 14, and resistance at 103.02, Friday's high.

Concerns that Ukraine will descend into civil war eased after President Putin called on separatists in the eastern reaches of the country to postpone their referendum on independence, and added that Russia had withdrawn its forces from the border.

Putin stressed that Russia will do "all it can" to resolve the crisis and will take a "most positive" approach to international peace efforts.

The crisis has taken its toll on the dollar by stoking fears the U.S. will become more involved, which could hamper recovery, and hopes for a diplomatic solution out of the melee gave the greenback support.

The dollar did, however, see headwinds back home.

Federal Reserve Chair Janet Yellen said earlier that a high degree of monetary accommodation remains warranted given the slack still persistent in the economy, and added that while conditions in the U.S. labor market have improved, they remain far from satisfactory.

Yellen added that monetary authorities expect economic growth to accelerate this year despite the slowdown in the first quarter but warned that the recent housing market slowdown "could prove more protracted than currently expected."

The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.05% at 141.56, and GBP/JPY trading down 0.07% at 172.52.

On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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