By Alun John

HONG KONG, (Reuters) – The dollar was up against the Swiss franc and Japanese yen on Wednesday as markets tried to understand the recent developments in Ukraine. However, the market whipsaws kept major pairs relatively quiet due to increased nervousness.

The New Zealand dollar rose 0.44% in response to the Reserve Bank of New Zealand raising interest rates. However, this was despite the possibility of Russia launching a massive invasion of Ukraine.

Early Asia trade showed that one U.S. dollars was currently worth 115.03yen. This is after the greenback steadily climbed overnight from Monday’s near-three-week low at 114.48, which it hit on Monday. And, finally, at 0.9210 Swiss Francs (after a 0.63% overnight rally).

As investors were seeking security, both safe haven assets moved in the past week.

Tensions were at a breaking point when Russia sent troops to eastern Ukraine’s separatist areas. Western countries responded by imposing sanctions and threatening further action if Moscow invades its neighbor.

However, the euro was relatively stable and last traded at $1.1331, just slightly above early Asia. Although it had traded well this week without any clear direction, it was not affected.

Sterling was steady at $1.35890 and the, which measures the currency’s performance against its major peers, at 96.026 barely changed this week.

“Russia‑Ukraine tensions remain front of mind,” said analysts at CBA in a morning note to clients, but they added “the market reaction is modest so far because the Russian, European and U.S. actions have been flagged for some time.”

The high prices of energy partly due to the Ukraine situation and the rise in other commodities caused the Australian dollar to reach $0.7235 Wednesday. This was its highest level in almost two weeks.

Due to concerns that Ukraine’s crisis may cause supply disruptions, crude oil rose to almost $100 per barrel Tuesday. It has now reached its highest price since 2014. [O/R]

This was also affecting Europe, where the dollar plunged 1.3% on Tuesday against the Norwegian krone.

The global monetary scene was dominated by the Reserve Bank of New Zealand, which provided investors with a reminder of the central bank’s role in currencies.

Although the 25-basis point hike was expected and was the third in succession, the central banks stated that more tightening was needed. They also indicated they were willing to increase rates in future increments if required.