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Dollar resumes climb as Ukraine tensions rise

A rise in tensions over Ukraine put the dollar back on its climb upward on Thursday (Aug 28), with the yen also benefiting from a push to safe-haven currencies.

NEW YORK: A rise in tensions over Ukraine put the dollar back on its climb upward on Thursday (Aug 28), with the yen also benefiting from a push to safe-haven currencies.

The US greenback jumped after reports that more than 1,000 Russian troops had entered Ukraine, supporting pro-Moscow separatist rebels fighting Kiev.

Despite denials from Moscow, that brought fresh warnings from NATO and Washington and market worries of an escalation of fighting.

"Russia has to stop lying and has to stop fueling this conflict," US Ambassador to the United Nations Samantha Power said. "The mask is coming off. We see Russia's actions for what they are: a deliberate effort to support and now fight alongside illegal separatists in another sovereign country."

The dollar rose as high as $1.3163 to one euro, before easing back slightly. The market hardly reacted to the upward revision to US second-quarter growth, to a robust 4.2 percent pace, and other positive data.