Currency Buzz: Safe Haven Yen On Firm Footing

25 Jan 2022 , 01:31 PM

The safe haven Japanese yen gained momentum on Tuesday, amid escalating political worries about a potential military conflict in Ukraine and with investors turning sceptical ahead of the upcoming Fed policy decision. The Fed is scheduled to announce its decision on Wednesday, which should provide fresh clues about the likely timing of when the Fed will commence its policy tightening cycle. Yen firmed up to 113.8 per dollar after hitting a high of 113.49 overnight, the lowest level since December 20. The currency is witnessing strong resistance near 113.75 levels as investors prefer to wait for the outcome of a two-day FOMC monetary policy meeting. Meanwhile, the dollar index, which measures the greenback against six major peers was up at 95.99, after climbing as high as 96.135 overnight for the first time since January 10.

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