Econ

This assignment is open-book, so your score will be based on how clearly your answers are explained. This homework will account for 4% of your final grade.

Recently, the British news site Reuters.com published an article about currency exchange: Here is a quote:

The dollar edged higher versus the yen on Monday, though a tense situation in Ukraine was likely to keep traders on their toes, with some markets still closed for the Easter holiday.

The dollar rose to its highest level in nearly two weeks against the yen after data showed Japan logged a record trade deficit in the fiscal year that ended in March.

[...]Unrest in the Ukraine added to the yen's safe-haven appeal and was likely to keep the Japanese currency's losses in check.

At least three people were killed in a gunfight early on Sunday near a Ukrainian city controlled by pro-Russian separatists, shaking a fragile international peace accord.

The euro rose 0.2 percent against its Japanese counterpart to 141.69 yen, and touched a two-week high near 141.83 yen earlier on Monday.

Against the greenback, the euro was steady at $1.3810, though still well shy of a 3-1/2- week peak of $1.3906 marked on April 11.

The euro hit a 2-1/2-year high near $1.40 last month, prompting European Central Bank officials to express their concern that a strengthening currency could damage the euro zone's nascent recovery.

In the week ahead, the dollar could take its cues from U.S. housing related-data, as well as a reading on durable goods orders

Write a 2-4 page paper explaining why the yen may have lost value against the dollar and means in this context, how events in Ukraine may have influenced this, and why the euro strengthening could damage European recovery