Investing.com - The dollar fell against the yen on Wednesday and the Australian dollar came under heavy selling pressure as worries over the outlook for growth in China and escalating tensions over the crisis in Ukraine sapped risk appetite.
USD/JPY hit 102.69, the lowest since March 6 and was last down 0.25% to 102.74.
Safe haven demand continued to be underpinned by worries over the outlook for China’s economy after data over the weekend showed that exports dropped 18.1% in February and inflation slowed.
Investors were also on edge after China’s first domestic bond default last Friday fuelled fears over problems in the country’s financial sector.
Markets were also warily eyeing the standoff between Russia and the West over Ukraine after Russia said it would recognize the results of a referendum in Crimea.
Ukraine’s interim Prime Minister Arseniy Yatsenyuk was to travel to the U.S. to meet President Barack Obama on Wednesday, as diplomatic efforts to resolve the crisis intensified.
EUR/USD dipped 0.04% to 1.3854, and was trading in a range of 1.3865 and 1.3843.
The single currency fell on Tuesday after European Central Bank Vice President Vitor Constancio said markets had missed some parts of its message on forward guidance last week.
He also said the ECB still had policy options available, including lower interest rates or quantitative easing, if necessary.
Elsewhere, the dollar was steady against the pound and the Swiss franc, with GBP/USD inching down 0.03% to 1.6611 and USD/CHF dipping 0.07% to 0.8773.
The Australian dollar fell to seven-day lows, with AUD/USD down 0.47% to 0.8935. China is Australia’s largest export market, which makes the Australian dollar sensitive to worries over slackening demand from China.
Meanwhile, NZD/USD slipped 0.10% to 0.8460.
The U.S. dollar pushed higher against the Canadian dollar, with USD/CAD inching up 0.10% to 1.1116.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.03% to 79.90.