The safe haven currency, the Japanese yen depreciated again on Friday and risky currencies like the Australian dollar strengthened as investors began to breathe a sigh of relief from plans to hold talks between the United States and Russia over the crisis in Ukraine.
The yen and Swiss franc, which have strengthened since the beginning of the week, as investors feared escalating tensions on Ukraine's border began to decline again. In addition, the consolidation was also driven by rumors that Russia was looking for an excuse to launch an attack.
Sentiment improved when the latest news that the U.S. Secretary of State. Antony Blinken has accepted an invitation to meet with Russian Foreign Minister Sergei Lavrov next week on the condition that Russia does not invade Ukraine.
According to MUFG analyst Derek Halpenny, "The confirmed meeting between Blinken and Larrov may carry an indication that market conditions will be stable over the weekend but the cautious attitude in the market will remain".
The US dollar index, which measures the US dollar against six major currencies, traded 0.14% stronger at 95.938. The US dollar also strengthened 0.2% against the franc on Friday to 0.9216 francs, while the euro strengthened 0.1% against the Swiss currency.
On the Yuan, Stuart Cole, a macroeconomist at Equiti Capital, argues that Chinese authorities have done nothing to curb the yuan’s rise so far this year.
The focus of the market is now still focused on geopolitical developments between Russia and Ukraine.
