Euro and dollar fall

Published: 18 Jul at 5 AM Tags: Euro, Dollar,

The safe haven yen has rallied after tensions in Gaza increase and news comes in that a Malaysian Airlines flight has been shot down over Ukraine. The Japanese currency is up against both the euro and the dollar. All 298 people on board the jet have been killed. In Gaza, Israeli troops are about to conduct a ground campaign following more than a week of aerial bombardment.

The euro is close to its lowest level in five months against the yen at 136.715 yen, a drop of 0.9 per cent. The dollar lost 0.5 per cent to touch 101.25 yen. The single currency is currently worth $1.3512, the lowest it has been against the greenback in a month.

Risk assets have been hit hard by rising geopolitical concerns which is likely to push safe haven bets like the yen. Russia’s rouble has also tumbled as the conflict between pro-Moscow rebels and Kiev looks certain to escalate.

The West has already been imposing more sanctions on Russia. The dollar is currently up 1.8 per cent against the rouble. A drop in US Treasury yields saw the greenback down 0.02 per cent against the euro.

German Bunds are also in demand as a safe haven asset.