Investing.com - The dollar moved higher against the yen on Tuesday, as concerns over the crisis in Ukraine eased following reports that Russian President Vladimir Putin ordered troops engaged in military exercises back to their bases.
USD/JPY rose to 101.95, the highest since Friday and was last up 0.35% to 101.80. The pair fell to one-month lows of 101.19 on Monday.
The pair was likely to find support at 101.19, Monday’s low and resistance at 102.15.
Market sentiment recovered after a report that President Putin had ordered troops engaged in military exercises close to Ukraine’s borders back to base after the exercises concluded.
The dollar’s move higher came after a broad based selloff in markets on Monday, as hightened tensions over Russia’s military intervention in Ukraine’s Crimea region spurred widespread risk aversion.
Investors remained cautious after President Barack Obama said the U.S. was considering economic sanctions to "isolate Russia".
The dollar was also boosted after the Institute for Supply Management reported Monday that its manufacturing index rose more than forecast in February, as new orders rebounded after bad weather caused disruption at the start of the year.
The dollar was lower against the euro, with EUR/USD rising 0.17% to 1.3758, holding below last Friday’s two-month high of 1.3823.
The euro 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.
Elsewhere, the euro was also higher against the yen, with EUR/JPY advancing 0.57% to 140.12.