Safe haven yen drops

Published: 18 Apr at 8 AM Tags: Euro, Dollar,

The yen has dropped to its lowest level in 10 days as the dollar finds support from positive economic data coming out of the US and hopes that the situation in Ukraine could soon be resolved. The US dollar is currently worth 102.43 yen following a low of 101.32 yen.

US economic data appears to be recovering from this year’s severe weather disruption. Jobless benefits claims continue to dip to levels not seen since before the recession and Mid-Atlantic manufacturing was up in April.

Investors also seem to be less concerned about betting on the safe haven yen after the European Union, Ukraine, Russia and the US all called for a cessation of violence yesterday.

Trading is likely to be subdued today as many markets close for the Easter holiday. The euro continues to hover at $1.3815 after last month’s 2.5 year peak close to $1.40. Officials at the European Central Bank have since been trying to push the single currency down as they are concerned that its strength could hamper economic recovery in the eurozone.

Sterling has eased to $1.6781 after yesterday hitting a 4.5 year high of $1.6842. The pound is also close to its highest level in six weeks against the euro.