The impact from the current situation in Ukraine resonated throughout the worldwide currencies, with unsurprising downward movement for the Russian rouble, as well as for safe haven currencies like the Japanese yen and the Swiss franc.
Monday saw the rouble hit record lows against sterling, even though Russian interest rates were unexpectedly raised and the Central Bank sold $10 billion, while the yen and franc gained strength as investors bought in to the safer currencies. These two situations reversed somewhat the following day, while commodity currencies bounced back with the South African rand and the Australian dollar performing well. Things started to return to normal as Russian President Putin seemingly diffused the situation, leading the yen to drop back to two-week lows against sterling. The Australian dollar made advances across the board, thanks to better-than-forecast growth figures.
Yesterday saw the yen fall further, hitting five-week lows against the US dollar, while the Australian dollar saw further positive data in the shape of retail sales and an extended trade surplus. Another strong performer was the Canadian dollar, which strengthened for a second day. Higher building permits added to their unchanged interest rates, rounding off a busy week for the worldwide markets.
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