News Tech: The safe-haven yen rallied against the dollar on Friday as US President Joe Biden said that Moscow was preparing a pretext to justify a possible attack on Ukraine, also supporting Swiss franc and hurt bitcoin. The dollar fell to a fresh two-week course. as low as 114.78 yen at the start of trading in Asia and down 0.5% so far this week. ABC analysts said in a morning client note, adding that markets are also focused on the Bank of Japan policy as the central bank continues its policy of control. yield curve.
At the other end of the risk spectrum, bitcoin is trading around $40,500, around a two-week low, after falling late Thursday sent it down 7.6% on the day. “Crypto has shown us once again that this is a high-risk beta asset and it has one,” said Chris Weston, research lead at Pepperstone, a Melbourne-based brokerage. A dark and sinister look can turn into something ugly. in a morning email. The euro continued a volatile trading week based on Ukrainian headlines and was at $1.1360, while the pound was at 1.3609, supported by markets betting on tightening currency from the Bank of England.
The early morning gun battles on Thursday between Kyiv forces and pro-Russian separatists – who have been at war for years and where a ceasefire is periodically violated – have raised concerns in the West. about an impending invasion of Russia. US President Joe Biden said that Moscow was preparing a pretext to justify a possible attack and that the Kremlin expelled an American diplomat. These tensions also caused the dollar to lose ground against the Swiss franc, with the greenback remaining at 0.9196 francs, just above Thursday’s two-week low of 0.9186 francs.
Central bank policy also plays an important role in the yen, after the BOJ this week offered to buy an unlimited number of benchmark 10-year government bonds to underscore its determination to contain costs for the country. domestic loans. Markets have not actively tested the BOJ’s 0.25% yield target on these bonds, but yields on other maturities have risen. Meanwhile, policymakers in the United States continue to openly debate how drastically the Federal Reserve should raise interest rates and whether it should start with a 25-point hike.