Yen hit by growing appetite for risk

Published: 5 Mar at 8 AM Tags: Euro, Dollar,

As investor confidence grows for riskier bets, the yen has suffered heavy losses across the board. The safe haven currency has experienced a reversal of fortune as the threat of war in Ukraine eases.

The dollar has recovered from Tuesday’s 101.40 yen low to hit 102.26. The euro has also risen from 139.28 yen to 140.49. The Aussie dollar has also managed to find some support and is currently up around 1 per cent to 91.52 yen.

Russian President Vladimir Putin has held a press conference in which he said that although Russia has an obligation to protect its compatriots living in Ukraine there is no need to use force at the present time.

The global financial markets have breathed a sigh of relief with stocks surging in Europe and the US. However, some analysts are warning that as long as the situation remains uncertain in Ukraine the financial markets are likely to remain volatile.

The euro has come under pressure as investors look to Thursday’s review at the European Central Bank. As inflation in the eurozone remains well below the target of nearly 2 per cent, the central bank could announce a looser monetary policy in order to stimulate the regions fragile economy.