The U.S. Dollar Index inched up 0.02% to 95.825
The dollar was up on Friday morning in Asia. However, the safe-haven yen gained more ground on the dollar after U.S. President Joe Biden accused Russia of preparing a pretext to justify a possible attack on Ukraine.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.02% to 95.825 by 3:09 AM GMT. The dollar is down 0.5% so far in the week so far.
The USD/JPY pair was up 0.22% to 115.19.
The AUD/USD pair was up 0.24% to 0.7200 and the NZD/USD pair was up 0.33% to 0.6709.
The USD/CNY pair inched down 0.03% to 6.3354 and the GBP/USD pair inched up 0.03% to 1.3609.
The support level of 114.63 looks within reach today if more negative headlines on Ukraine emerge, CBA analysts said in a note. Markets were also focused on the Bank of Japan (BOJ)’s policy, as the central bank continues with its policy of yield curve control, the note added.
Russia-Ukraine tensions also caused the U.S. currency to lose ground on the Swiss franc, with the greenback last at 0.9196 francs, or just above Thursday’s two-week intraday day low of 0.9186 francs.
Volatility continued for the euro due to the tensions in Ukraine, and the single currency last traded at $1.1360. The British pound was supported by bets that the Bank of England will further tighten its monetary policy.
Central banks and their monetary policies were also under scrutiny with the BOJ’s offer to buy an unlimited amount of benchmark 10-year government bonds earlier in the week weighing on the yen. Although markets have not aggressively tested the BOJ’s 0.25% yield target on those bonds, yields on other tenors have been rising.
