Sharjah24 – Reuters: The dollar fell and the euro gained on Wednesday as markets took a positive view on peace talks in Ukraine, while the Japanese yen recovered from seven-year lows as traders speculated that officials were uncomfortable with its recent weakness.

Equity markets were up in the Asian session, continuing a pick-up in sentiment in Wall Streets as markets became hopeful that the Ukraine conflict could end - although this move ran out of steam as European shares opened in the red. Read full story

The dollar extended its losses on Wednesday, as investors changed their mind on their defensive bets.

At 0739 GMT, the dollar index was down 0.4% on the day at 98.019, having touched a 12-day low in early European trading.

The euro rallied against the dollar, with the pair up 0.4% at 1.11275 EUR=EBS.

Heavily sold on fears of the economic fallout from the war in Ukraine and nerves about the risk of the conflict spreading west, the euro has been a beneficiary of hopes for peace.

The risk-sensitive Australian and New Zealand dollars also gained, with the Aussie up 0.1% on the day at $0.75125 AUD=D3. 
Investors expect the U.S. Federal Reserve, which raised rates by 25 basis points at its March 16 meeting, to be more hawkish than the European Central Bank, driving the dollar higher against the euro.