The dollar rose for a third day as tension in Ukraine prompted traders to seek refuge in the world’s reserve currency and on speculation Japan may be moving closer to starting another round of economic stimulus.
Michael Ganske, head of emerging markets research at Commerzbank AG in London, comments on China widening the yuan’s trading band to 1 percent from 0.5 percent, to take effect on April 16. He also speaks about the increase in the foreign-investment quota enacted by Chinese policy makers on April 3:
Ukraine’s bonds ended a three-day rally and the currency plunged to a record as Russia warned the former Soviet republic may default, while the nation’s interim leaders delayed a vote on a unity government.
Markets from Hungary to Poland and Russia are suffering contagion from the violence rocking Ukraine’s capital, sending bond yields higher and currencies lower as the turbulence afflicting developing nations deepens.