2014.04.2503:12:20UTC+00Mounting Crisis in Ukraine brings U.S. Dollar under pressure

The dollar came is threatened by the yen on Friday as mounting crisis in Ukraine undermined the upbeat about U.S. economic development following strong U.S. durable goods information.

The dollar exchanged at 102.30 yen, in almost a one-week low of 102.085 hit on Thursday, after Ukrainian forces killed up to five pro-Moscow rebels on Thursday as they closed in on the separatists' military stronghold in the east.

Russia executed army drills near the border in response, increasing fears its troops would invade, while U.S. Secretary of State John Kerry said Washington is drawing closer to imposing more penalties on Russia.

"Although the price action in the currency market has been limited so far, the escalation of tension in Ukraine is likely to keep markets risk-off," said Kyosuke Suzuki, director of forex at Societe Generale.

Concerns over a wider dispute between the West and Russia eclipsed an otherwise brightening economic outlook in the United States.

March U.S. durable products orders bolstered 2.6 percent, above economists' projections for a 2 percent jump.

Wall Street shares were also volatile after Apple Inc. leaped following its powerful revenue progress as well as share buyback, although worries about Ukraine kept surges in check.

The Japanese yen displayed limited reaction to Japan's consumer financial value information, which showed core CPI skyrocketed 2.7 percent in the Tokyo area, a little less than economists' projection of 2.8 percent.

As the impact of a consumption tax hike is projected to have advanced the reading by 1.7 percentage points, the data proposed inflation has been essentially unmoved from March, when it jumped 1.0 percent.

Although a lot of investors assume Japan's inflation to ease later this year, Bank of Japan Governor Haruhiko Kuroda has been bullish, stating that inflation is firmly on track to achieve the BOJ's goal of 2.0 percent.

As Kuroda's rosy economic picture has turned down assumptions of an immediate easing by the BOJ, thus helping to aid the yen, many investors are eyeing the BOJ's economic outlook report due on Wednesday.

As this happens to the greenback, the euro stand tall at $1.3831, bouncing back from Thursday's low of $1.3791 reach after European Central Bank President Mario Draghi reiterated the possibility for asset purchases to ward off deflation risks.

He warned that a surging euro, which hurt the euro zone's exporters, could force the ECB's hand on financial policy measures.

"The exchange rate is an increasingly important factor in our assessment of the outlook for price stability," Draghi said.

The euro was also aided by a positive German business sentiment index despite current problems over Ukraine.