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The dollar was on the front foot against the safe-haven Japanese yen and Swiss franc on Wednesday, 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% after the Reserve Bank of New Zealand raised interest rates, and said more tightening could be necessary.

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. “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.”

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