Yen rises as risk appetite wanes

Published: 11 Apr at 8 AM Tags: Euro, Dollar,

The yen is close to its highest level against the dollar in four weeks. Appetite for the safe-haven currency has been boosted by a share sell off on Wall Street and a waning appetite for risk in Asia. The dollar is currently worth 101.70 yen. So far this week the yen has risen 1.66 per cent against its US rival.

Support for the dollar has dropped after disappointing jobs data released by the US at the end of last week, the likelihood the Federal Reserve will not hike rates in the near future and no imminent additional stimulus by the Bank of Japan.

The situation in Ukraine is also making investors more risk averse. Russian President Vladimir Putin announced on Thursday that if Ukraine refuses to pay its bills he could cut off supplies of natural gas.

The euro is trading at $1.3896, close to its highest level in three weeks. This is despite comments by Mario Draghi, President of the European Central Bank, that quantitative easing could be introduced to stave off low inflation risks.

Elsewhere the Australian dollar is on track to hit a 1 per cent gain against the US dollar at $0.9280. The Aussie was given support by the Reserve Bank of Australia after an announcement that interest rates are to remain steady for the foreseeable future.