The Japanese yen dipped on Wednesday against the world's reserve currency and the common currency of the European Union amid a détente between Russia and Ukraine, according to Reuters.
The yen is likely to be impacted by euro zone retail sales data and private sector information about the U.S. labor market, both of which are set for release later this week. Russia tested a ballistic missile, serving as a reminder that the tumult between the two nations is not resolved.
"There was concern that if Russia used military force against Ukraine, oil prices would jump and negatively affect the bright outlook for the global economy," equities manager Hiroichi Nishi with SMBC Nikko Securities Inc. in Tokyo told the news source on Wednesday. "The prospect of military force has gone for now, and nerves have been calmed. Risk aversion is receding."
The common currency climbed roughly 0.15 percent against the yen and the greenback rose about 0.2 percent against the monetary unit of Japan.
The yen fell 0.7 percent against the U.S. dollar on Tuesday, notching its biggest loss against the greenback since the middle of January, according to Bloomberg.
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