Yen advances, Ruble suffers sanctions against Russia

Risk sentiment was kind of offset through late European trade boosting safe-haven currencies on Thursday, as renewed tension in eastern Ukraine opted Western government to take further action against Russia.

The most aggressive sanctions to date were unveiled by President Barack Obama yesterday, after travel banks and asset freezes aimed at President Vladimir Putin`s inner circle failed to force the country to meet an ultimatum to end support for separatists in eastern Ukraine. 

EU leaders also on Wednesday also ordered tougher sanctions against Russia, asking the European Investment Bank to sign no new financing agreements with Moscow.

The Japanese Yen hit a three-day low against the dollar, where the USD/JPY hit a session low of 101.39 before trading around 101.46 as of 13:50 GMT+3, compared with the day`s open at 101.65.

The dollar also rose against the Russian Rouble on the heels of new sanction against Russian business. The USD/RUR  rose for the third straight day, holding near a three-month high of 37.94, comapred with the day`s open at 37.84.

On the other hand, the dollar steadied agaisnt the  Swiss Franc  near the highest in three weeks, boosted by the safe-haven bid as traders fleed from the weak euro.  The  USD/CHF  hit a session low of 0.8968 before trading around 0.8976, compared with the day`s open at 0.8980.

Weakness in the euro also helped boost the dollar to a one-mont high, as traders weighed the outlook for US monetary policy amid growing bets for a sooner-than-expected hike in US interest interest rates.