Investing.com - The Japanese yen gained in early Asian trade on Monday with events in Russia-Ukraine and Middle East on investors minds and safe haven assets sought.
USD/JPY traded at 101.79, down 0.04%, while AUD/USD held at 0.9399, up 0.04%, and the US Dollar Index fell 0.05% to 81.11.
The Ukrainian government said at the weekend that it regained control of the separatist stronghold of Lysychansk after several days of fierce fighting, a move it said would pave the way to take back a string of other important rebel-held positions.
U.S. Secretary of State John Kerry failed to secure a temporary cease-fire between Israel and the Palestinian militant group Hamas after nearly a week of shuttle diplomacy in the Middle East, but pledged to continue his efforts over the weekend.
Markets in many parts of Southeast Asia are closed to mark the Eid holiday.
Additionally, there no major releases scheduled in the region's major economies such as Japan and China, pointing to the likelihood of a quiet day ahead.
Last week, the euro fell to eight month lows against the dollar as weaker than expected German economic data underlined concerns over the diverging monetary policy path between the European Central Bank and other central banks.
The drop in the euro came after a report showed that Germany’s Ifo business climate index dropped to 108.0 in July, missing estimates for a reading of 109.4. It was the third consecutive monthly decline.
Sentiment on the single currency was also hit by concerns that tougher sanctions on Russia would have a negative impact on the outlook for growth in the currency bloc, which has close trade ties with Moscow.
The greenback was boosted by better than expected data on U.S. durable goods orders for June.
The Commerce Department reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%.
In the week ahead, investors will be focusing on Wednesday’s revised reading on U.S. second quarter growth, while Friday’s nonfarm payrolls report will also be in focus.
Wednesday’s Fed statement will also be closely watched for any indications that the central bank is moving closer to raising rates.
On Monday, the U.S. is to release data on pending home sales.