The yen increased to its strongest level in almost a month versus the dollar after Russia took control of Crimea, intensifying concern of a conflict with Ukraine’s government and boosting demand for haven assets.
The yen climbed the most in three weeks against the dollar as reports that Russian President Vladimir Putin put fighter jets on combat alert amid rising tensions in Ukraine boosted demand for less-risky assets.
The euro fell for a second day against the dollar as weaker-than-forecast factory output in the region in December prompted speculation that the European Central Bank may consider further monetary stimulus.
The yen declined for the first time in three days as demand for the safest assets eased amid a better-than-projected financial forecast from Caterpillar Inc. and a gain in a gauge of business confidence in Germany.
The euro advanced the most in almost four weeks against the dollar as a measure of manufacturing in the region rose to the highest in more than 2 1/2 years, boosting optimism that growth in Europe is gathering pace.