Japanese Yen Gains Strength Amid Gaza Combat, Ukraine Instability
The Japanese Yen received quite a bit of attention Monday morning as it debuted on markets much stronger than anticipated despite turmoil in conflict ridden Gaza and the unstable region surrounding Ukraine.
The Yen appreciated against most global currencies with the (USDJPY) resulting in the dollar buying Yen 101.30, a drop from 101.36 at the end of last week. Meanwhile, the euro (EURJPY) also gave way to the Yen, offered at Yen 137.03 from Yen 137.12 by Friday’s closing.
Currencies traditionally considered safe havens saw gains across the board as fighting continued in Gaza, resulting in 96 Palestinian and 13 Israeli casualties incurred Sunday.
Ukraine garnered its fair share of attention as well following in the wake of the MH17 disaster that resulted in a passenger jet being shot down over eastern Ukraine and killing all 298 passengers on board.
No group has yet claimed responsibility, however many world powers believe Russia to have had a hand in the event.
Additionally, government forces attempted to retake the rebel held city of Donetsk as the conflict continued at the city’s railway station, according to media sources in the area.
Ukraine remains the main focus of Forex markets. It is being viewed as an isolated incident more than anything with few seeing the conflict as having far reaching implications. However, should sanctions against Russia emerge, things could change very quickly.