The yen rose the most in four months against the dollar as a flareup in tension between Russia and western nations over Ukraine damped the appeal of riskier assets.
Japan’s currency briefly surged against the dollar amid speculation of what’s known as a “fat-finger,” or accidental, trade. The ruble dropped for a 10th day and Eastern European currencies plunged as the conflict sparked a flight out of the region’s assets. The dollar touched the strongest level in almost nine months versus the euro as data showed German factory orders declined and Italy returned to recession.
“The overarching sentiment appears to be more toward risk reduction,” said Richard Franulovich, the chief currency strategist for the northern hemisphere at Westpac Banking Corp. in New York.
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