HONG KONG, Feb 23 ― The dollar was on the front foot against the safe-haven Japanese yen and Swiss franc today, as whipsawed markets looked to get a handle on the latest developments around Ukraine, though heightened nervousness kept most major pairs fairly muted .

Away from the threat of a full-scale Russian invasion of Ukraine, the New Zealand dollar jumped 0.44 per cent after the Reserve Bank of New Zealand raised interest rates, and said more tightening could be necessary.

One US dollar was worth ¥115.03 (RM4.18) in early Asia trade, with the greenback having climbed steadily overnight from its near three-week low of 114.48 hit Monday, and at 0.9210 francs, after a 0.63 per cent overnight rally.

Both safe haven assets had been advancing for the past week as rising tensions in Ukraine sent investors seeking safety.

The tensions reached crisis point this week when Russia ordered troops into separatist regions of eastern Ukraine, Western nations responded with sanctions, and threatened to go further if Moscow launched an all-out invasion of its neighbour.

However, the euro was comparatively unaffected, and was last at US$1.1331, marginally higher in early Asia, having traded choppily this week, but without finding a clear direction.

Sterling was steady at US$1.35890, and left the dollar index, which tracks the currency against major peers at 96.026, barely changed this week.

"Russia‑Ukraine tensions remain front of mind,” said analysts at CBA in a morning note to clients, but they added "the market reaction is modest so far because the Russian, European and US actions have been flagged for some time.”

High prices for energy, partly a result of the situation in Ukraine, and other commodities helped the Australian dollar rise to US$0.7235 today, its highest in nearly two weeks.

Oil rose to nearly US$100 a barrel yesterday on worries of the Ukraine crisis could cause supply disruptions, and reached its highest level since 2014.

These higher prices were also having an effect in Europe and the dollar tumbled 1.3 per cent on the Norwegian krone yesterday.

On the global monetary front, the Reserve Bank of New Zealand gave investors a reminder that central bank policy was still a major factor in currencies.

While its 25-basis-point hike, its third hike in a row, was widely expected, the central bank said more tightening would be needed, and that it was willing to move rates by larger increments in the future if necessary. ― Reuters