U.S. Dollar Falls On Mounting Geopolitical Tensions
09 August 2017 - 5:50AM
RTTF2
The U.S. dollar traded lower against its major counterparts in
the Asian session on Wednesday on growing tensions between the U.S.
and North Korea, after the U.S. President Donald Trump threatened
to meet North Korean nuclear tests "with fire and fury."
The remarks followed a new report asserting that U.S.
intelligence has assessed that North Korea has successfully
produced a miniaturized nuclear warhead that can fit inside its
missiles.
The move raised worries that Pyongyang could launch a
pre-emptive attack on the US.
North Korea responded to Trump's comments, claiming that it was
"carefully examining" a strike on US Pacific territory of Guam.
The greenback was higher against most major counterparts on
Tuesday, after upbeat Jolts report underscored confidence in US
labor market.
The greenback declined to a weekly low of 0.9657 against the
Swiss franc, compared to Tuesday's closing value of 0.9741. If the
greenback-franc pair extends fall, 0.96 is likely seen as its next
support level.
The greenback slipped to near a 2-month low of 109.74 against
the Japanese yen and held steady thereafter. The pair closed
Tuesday's trading at 110.34.
Data from the Bank of Japan showed that Japan's M2 money stock
rose 4.0 percent on year in July, coming in at 978.5 trillion
yen.
That exceeded expectation for 3.9 percent, which would have been
unchanged from the June reading.
The greenback fell back to 1.1762 against the euro, from a high
of 1.1720 hit at 10:15 pm ET. On the downside, the greenback may
target support around the 1.19 mark.
The greenback that closed Tuesday's trading at 1.2993 against
the pound edged down to 1.3028. The next possible support for the
greenback is seen around the 1.31 level.
Looking ahead, Canada building permits data for June is due at
8:30 am ET.
In the New York session, U.S. wholesale inventories for June are
set for release.
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