Kevin Buckland

TOKYO, Reuters – On Thursday the euro was weaker and safer-haven currencies like the U.S. dollars were more in demand amid increasing fears about a Russian-led invasion of Ukraine.

Following U.S. Secretary Antony Blinken’s statement that Russia is likely to invade Ukraine within hours, greenbacks, yens, and Swiss Franc rose toward their multiweek highs. However, greenbacks hovered close to a one week peak against major peers.

High commodity prices led to higher risk currencies that are linked to commodities also falling.

Ukraine declared a state emergency. Moscow immediately evacuated its Kyiv embassy. The West then imposed sanctions on Russia.

Euro fell to $1.12750 by 0.26%, its lowest point since February 3.

The index fell 0.29%, to 129.640 Japanese yen. This was close to Tuesday’s lowest of 129.360 yen. It is now its weakest point since February 3. Closer to Tuesday’s low at 1.03405, it fell 0.2% to 1.03550 Swiss Franc.

The currency’s performance against six main peers (yen, euro and Swiss Franc) rose by as high as 0.9% to 96.372, the highest level since February 14.

Joseph Capurso (OTC strategist) at Commonwealth Bank of Australia said, “We are definitely seeing a knee jerk reaction to Blinken’s comments.” He stated that haven currencies were in demand, and commodities currencies had been sold off.

The situation looks certain to worsen before getting better.

Australian dollars fell 0.33% at $0.72075, while New Zealand dollars dropped 0.4% to $0.67475.

Sterling fell 0.08% to $1.35340