Yen holding firm

Published: 12 Mar at 8 AM Tags: Euro, Dollar,

Investors appear to be in a cautious mood because of tension between Russia and Ukraine and because of concerns over the economic health of China. The yen is holding firm against the dollar, which is worth 103.01 yen. The dollar has improved slightly after positive job figures from the US at the end of last week.

The safe haven yen tends to outperform currencies like the Australian dollar at times of geopolitical stress. However, many experts are expecting the problems in the Crimea to subside. The Aussie dollar has also been hit by the economic slowdown in China and is currently worth 92.30 yen after hitting a high of 94.45 yen last Friday.

The euro has been put under pressure by suggestions that the European Central Bank might be preparing to introduce easing measures. The single currency dropped 0.4 per cent from a high on Friday to trade at $1.3855.

In New Zealand the dollar has remained steady at $0.8472 as investors look forward to a possible interest rate hike later this week.

Conversely in Thailand a cut in interest rates is expected to give a boost to the second-largest economy in Southeast Asia as political unrest continues in Bangkok.