The Japanese Yen climbed against the Pound and made a fourth consecutive day of gains against the Euro on Thursday after the safe haven currency received a boost following the news that Russia has put its military on alert, a move which heightened tensions in Ukraine and spooked investors.
Concerns grew after the news broke that the Russian military was ordered into combat readiness as the situation in Ukraine remains tense. 150,000 troops in Russia’s central and western regions, including those that border Ukraine commenced military drills.
The Crimea region is comprised mostly of pro-Russians and fears are growing that the region could call for separation from the pro-European West.
“Stories about Russian jets have been the catalyst for the Yen’s climb. As the political temperature in Ukraine continues to heat up, then accordingly we’re seeing risk-off moves with the usual beneficiaries,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce.
Government buildings in the Russian majority Crimea were seized by gunmen and the Russian flag was raised over several buildings in the regional capital of Simfropol. The city saw clashes between Ukrainians who support the new government and those who favour the Russians.
Tensions flared this morning when Ukraine’s acting President Oleksandr Turchynov warned Russian forces based in the Crimea region; “Any movements of troops, especially with troops outside that territory will be considered military aggression”.
As a result of the ongoing standoff the Russian Ruble tumbled to a new low against the US Dollar and the Ukrainian Hryvnia slumped to a ten-year low.
As tensions continue to build we can expect the safe haven Yen to continue to edge higher and the US Dollar also is likely to rise as safe haven demand increases.
Japanese Yen (JPY) Exchange Rates
|Pound Sterling||Japanese Yen||169.9760|
|US Dollar||Japanese Yen||102.1900|
|Australian Dollar||Japanese Yen||91.1037|