* Yen shrugs off Tokyo April CPI
* Euro recovers from low hit on ECB's Draghi comments
* Danish crown retreats from near three-month high
(Updates prices, adds comments)
By Anirban Nag
LONDON, April 25 The dollar was stuck near a
one-week low versus the yen on Friday, struggling to gain
traction as rising tensions in Ukraine offset optimism about
U.S. economic growth.
The dollar last stood at 102.25 yen, not far from
Thursday's one-week low of 102.085, at the end of a lacklustre
week against the safe-haven yen during which it has lost about
"There has been a slight boost in risk aversion which is
supporting the yen," Credit Agricole FX strategist Manuel
"But geopolitical risks are not having too much of an impact
on currencies with most investors still focussed on growth
prospects. If risk sentiment improves, the yen will be sold
off," he said.
Ukrainian forces killed up to five pro-Moscow rebels on
Thursday as they closed in on the separatists' military
stronghold in the east, and Russia launched army drills near the
border in response, raising fears its troops would invade.
The yen showed limited reaction to Japan's consumer price
data, with core CPI rising 2.7 percent in the Tokyo area, below
economists' forecast of 2.8 percent.
As the impact of a consumption tax hike is estimated to have
boosted the reading by 1.7 percentage points, the data suggested
inflation has been essentially flat from March, when it rose 1.0
"The (CPI) data was a tiny miss and had no real effect,"
said Jeffrey Halley, FX trader for Saxo Capital Markets in
Singapore. Halley said there were some dollar bids against the
yen down towards the 102.00 yen level, adding that the dollar's
top side might be capped near 102.60 yen.
Many investors expect Japan's inflation to ease later this
year, prompting more policy easing from the Bank of Japan. The
bank's governor Haruhiko Kuroda has said inflation is firmly on
a path to reach its targeted 2.0 percent.
His view has weakened expectations of an immediate easing by
the BOJ, helping to support the yen, and many investors are
looking ahead to Wednesday's BOJ's economic outlook report.
Concerns over a wider conflict between the West and Russia
overshadowed an otherwise brightening economic picture in the
United States. March U.S. durable goods orders rose 2.6 percent,
above economists' forecast for a 2 percent gain.
The euro held steady at $1.3835, having recovered
from Thursday's low of $1.3791 hit after European Central Bank
President Mario Draghi reiterated the potential for asset
purchases to ward off deflation risks.
He warned that a rising euro could force the ECB's hand on
monetary policy measures.
In the European session, volumes in euro/Danish crown trades
picked up for a second straight day, according to Reuters
Matching. The euro recovered from a near three-month low against
the crown of 7.4614 to trade at 7.4630 crowns.
The crown had soared in robust volumes after the Danish
central bank surprised the market by raising the rate on
certificate of deposits by 0.15 percentage points on Thursday in
a bid to stem outflows and support the currency.
(Additional reporting by Masayuki Kitano in Singapore; Editing
by Louise Ireland)