By Gina Lee

Investing.com – The dollar was down on Monday morning in Asia, with currency markets monitoring the ongoing tensions over Ukraine. As investors assessed the economic and energy implications of an invasion Russia, the safe-haven currency yen wasn’t far away from its two-week-high. The euro was also on edge.

By 10:27 ET, the exchange rate that measures the greenback to a basket of currencies had fallen 0.2% to 95.820 (3:27 GMT)

It fell by 0.03%, to 114.97.

Both the pair rose by 0.49%, to 0.7208. The pair also rose by 0.29%, to 0.6719.

While the pair was stable at 6.3255 it was up 0.2% to 1.3622.

The tensions between Russia and Ukraine are beginning to dominate price action as well as risk sentiment. The market is likely to keep chasing headlines without any clarity on the eventual outcome,” Barclays analysts in a note.

In a reflection of the situation, the euro got a small boost early in the Asian session U.S. President Joe Biden and Russian President Vladimir Putin agreed “in principle” to to discuss Ukraine. If Russia invaded Ukraine, however, the summit will not be held.

The announcement caused the yen to lose a bit of ground against the dollar. However, safe-haven assets such as the yen and Swiss franc benefitted from investors’ risk aversion due to the tension in Eastern Europe.

After falling in response to Sunday’s declaration by the Belarusian defense minister that Russia would expand military drills within Belarus, the euro was 0.12% stronger at $1.13340.

Central banks’ policies also remain on investors’ radars, with the People’s Bank of China’s loan prime rates due later in the day. It will deliver its policy decision Wednesday. On Thursday, it will be delivered by the.

Andrew Bailey, Governor of the Bank of England (BOE), will be appearing before the Treasury Committee Wednesday. Investors are also likely to be interested in clues as to whether the Fed will increase its rate by 50 basis points at their March 2022 meeting rather than the widely anticipated 25 basis point.

A lot of people expect the BOE to raise rates once again during its March meeting. However, the UK’s situation could limit gains.