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.
The hryvnia rallied after Ukraine’s central bank raised interest rates by the most since 1998 to stem the world’s worst selloff this year. Government bonds dropped amid a military confrontation in the country’s east.
Turkish central bank Governor Erdem Basci indicated to analysts in London on April 3 that he planned to keep monetary policy tight to control inflation. Less than a week later, after the country’s premier weighed in on the matter, he was sending out different signals.
Hungary needs a stronger forint because the current rate endangers foreign-currency borrowers, said Attila Mesterhazy, the leader of the opposition alliance preparing for the country’s April 6 general election.
The European Central Bank is unlikely to accept any default-rated Greek bonds as collateral, and thus the French proposal to roll over Greek securities announced last week will probably be withdrawn, according to Commerzbank AG.
The pound reached the strongest in a week against the dollar before an industry report tomorrow that economists said will show retail sales increased in January, adding to evidence the recovery is gaining momentum.
Ukraine’s hryvnia may slide at least 20 percent against the dollar as the International Monetary Fund pushes the country to accept greater exchange-rate flexibility and banks and businesses convert a backlog of the currency, according to Commerzbank AG.