2014.08.1023:28:27UTC+00Japanese yen dives against 16 major counterparts

The Japanese yen tumbled versus 16 major peers as concern alleviated about tensions in Ukraine following reports last week Russian warplanes finished drills and the country was seeking to mediate between Ukraine and rebel forces.

The yen dropped 0.1% to ¥102.13 per dollar as of 9:02 a.m. in Tokyo after it hit ¥101.51 on August 8, the firmest since July 24. The currency was at ¥136.88 against the euro from ¥136.83.

“If the Ukrainian government and pro-Russian separatists engage in a dialogue, stock gains and a rise in Treasury yields could spur some dollar buying. The yen is likely to come under selling pressure as geopolitical risks take a back seat,” said Toshiya Yamauchi, Senior Analyst at Ueda Harlow Ltd.

Pro-Russian rebels offered a humanitarian ceasefire that Ukraine’s military dismissed yesterday as lacking in essence, pushing ahead with a campaign to subdue the uprising in the eastern Ukraine.