Investing.com

Investing.com - The dollar fell to one-month lows against the yen on Monday as tensions between Ukraine and Russia continued to escalate, spurring risk aversion and fuelling safe haven demand.



USD/JPY hit 101.26, the lowest since February 6 and was last down 0.44% to 101.35.



The pair was likely to find support at 100.75 and resistance at 101.90.



Geopolitical tensions mounted after Ukrainian Prime Minister Arseniy Yatsenyuk said Sunday that his country was "on the brink of disaster" after Russia''s parliament authorized President Vladimir Putin to use military force in Ukraine.



The dollar was trading close to one-year lows against the traditional safe haven Swiss franc, with USD/CHF down 0.11% to 0.8793.



Meanwhile, the euro fell to its lowest level in a year against the Swiss franc, with EUR/CHF hitting lows of 1.2103, before pushing back up to 1.2194.



Market sentiment was also hit after official data on Saturday showed that China’s manufacturing purchasing managers’ index fell to an eight-month low in February, adding to fears over a slowdown in the world’s second largest economy.



Elsewhere, the euro was lower against the broadly stronger yen, with EUR/JPY down 0.54% to 139.70.



The euro remained supported against the dollar, with EUR/USD slipping 0.12% to 1.3785, not far from Friday’s two-month highs of 1.3823.



The euro strengthened on Friday after data showed that the annual rate of inflation in the euro zone remained steady at 0.8% in February. The data eased pressure on the European Central Bank to tighten monetary policy at its upcoming meeting on Thursday.



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