The risk of a return rose in the market after hopes of seeing a meeting of the two leaders of the United States and Russia faded following the Kremlin’s statement that they had no plans for it.
The situation was exacerbated by reports of an attempted Russian-Ukrainian border intrusion in Rostov on Monday that had prompted an increase in the safe-haven currency in the previous session.
This pushed the yen to a nearly three -week high against the US dollar, while the Swiss franc traded to a one -month high.
The US dollar, which is also considered a safe-haven, also recorded stronger gains against most major currencies in today's Asian session.
Meanwhile in the latest development, Russian President Vladimir Putin recognized two provinces in eastern Ukraine (Luhanks and Donetsk) as independent entities on Monday and ordered Russian troops to launch ‘peacekeeping operations’ into the area.
Putin’s actions have resulted in the US and Europe imposing new sanctions on Russia and further increasing tensions in its crisis with Ukraine.
This uncertainty pushed the risk -sensitive Aussie and kiwi dollars to trade under pressure by recording limited declines.
Meanwhile, the euro and the pound continued to fall lower due to the surge in the US dollar. European and UK Zone manufacturing and services PMI data released yesterday showed mixed readings in February.
