Currency Volatility Falls Before U.S. Jobs Amid Ukraine Tensions


A gauge of currency swings slid for a second day as traders monitor the Ukraine crisis and before the U.S. reports figures for February employment tomorrow.

The yen fell to a one-week low yesterday versus the dollar as Russian and U.S. diplomats met in Paris to discuss the crisis in Ukraine. The dollar maintained losses against a basket of major peers after a private report showed hiring rose less than forecast, adding to concern harsh winter weather hampered economic growth. The euro held a decline versus the pound before the European Central Bank meets today.

“We can’t make a move till we see the U.S. jobs report and how the Russia-Ukraine situation will be played out,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The dollar may be sold heavily if the jobs data fall short of consensus.”

Deutsche Bank AG’s index measuring three-month implied volatility for nine major currency pairs, which is still trading, fell eight basis points to 7.50 percent. A decline would mark a second day of losses following a nine basis point drop on March 4.

The yen was little changed at 102.36 per dollar as of 8:42 a.m. in Tokyo after touching 102.55 yesterday, the weakest since Feb. 26. It traded at 140.56 per euro from 140.49. Europe’s 18-nation currency was little changed at $1.3732. The euro bought 82.15 pence after losing 0.4 percent to 82.13.

The Bloomberg Dollar Spot Index retreated yesterday for the first time in three sessions, falling 0.1 percent.