Investing.com

Investing.com - The euro was higher against the dollar on Tuesday as tensions over the crisis in Ukraine eased after Russian President Vladimir Putin said there is "no need yet" to use military force in Ukraine.



EUR/USD hit session highs of 1.3774 and was last up 0.18% to 1.3759.



The pair was likely to find support at 1.3700 and resistance at 1.3791, Monday’s high.



Market sentiment was boosted after President Putin said a Russian military deployment in Ukraine is not needed now but the “possibility” still remains, and added that if Russia takes action it will be legitimate.



The euro built on earlier gains that came after the Russian defense minister ordered troops engaged in military exercises close to Ukraine’s borders to return to their bases.



Market sentiment remained fragile, with Russian forces still maintaining a military presence in Ukraine’s Crimea region. Meanwhile, the U.S. was likely to impose economic sanctions on Russia later in the week, following its military incursion into Crimea.



The common currency continued to remain supported after better-than-expected euro zone inflation data late last week eased pressure on the European Central Bank to tighten monetary policy at its upcoming meeting on Thursday.



The euro was higher against the yen, with EUR/JPY advancing 0.63% to 140.20.



Elsewhere, the dollar was higher against the safe haven yen. USD/JPY rose to session highs of 101.95 and was last up 0.39% to 101.84, moving off the previous session’s one-month lows of 101.19.



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