Investing.com - The dollar edged lower against the safe haven yen on Monday as tensions between Russia and the West mounted and unrest in the Middle East escalated, souring market sentiment.
USD/JPY eased down 0.10% to 101.23, not far from Friday’s one week low of 101.07.
Investors remained risk adverse following the shooting down of a Malaysian airliner in eastern Ukraine late last week. The U.S. has accused Russia of complicity in the crash, and European leaders have threatened to impose far reaching new sanctions against Moscow, sparking fears over the impact on global growth. Markets also remained uneasy as fighting in Gaza continued.
Trade volumes remained thin on Monday with markets in Japan closed for a holiday.
The dollar was little changed against the traditional safe haven Swiss franc, with USD/CHF at 0.8983.
The euro was steady, with EUR/USD at 1.3524, holding above Friday’s five month trough of 1.3490.
The euro remained under pressure after recent comments by European Central Bank President Mario Draghi were seen as the latest sign that the bank is open to further monetary easing measures to stave off the risk of deflation in the euro area.
In contrast, Federal Reserve Chair Janet Yellen indicated last week that interest rates may rise sooner if the economy continues to improve.
The pound slipped lower, with GBP/USD slipping 0.09% to 1.7072, off the almost six-year high of 1.7190 struck early last week.
AUD/USD dipped 0.11% to 0.9381, while NZD/USD eased up 0.09% to 0.8695. Elsewhere, the Canadian dollar was weaker, with USD/CAD rising 0.12% to 1.0748, off Friday’s one week lows 1.0707.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was almost unchanged at 80.61, not far from last Thursday’s one month highs of 80.67.