FOREX – US Dollar Keeps Steady Rise as North Korea Scare, Risk Sentiment Wane
The US currency maintained its ealier advance on Tuesday, after an unexpected recovery on the heels of improving risk sentiment from Wall Street as concerns regarding hermit state North Korea and Hurricane Irma subsided.
The USD index, which monitors the currency versus a host of 6 key counterparts, remained unchanged at 91.874 after it slid to a 2 and a half year low of 91.011 as of Friday.
The euro remained little changed at $1.1955EUR after dropping 0.7 pct overnight. The EUR hit $1.2092 as of Friday, the currency’s strongest level since January 2015, as the USD succumbed to a broad decline.
Surging U.S. Treasury output also strengthened the greenback as benchmark U.S. ten-year note yield (US10YT=RR) climbed to 2.135 pct after settling 2.125 pct as of Monday, and 2.060 pct as of Friday.
According to Japanese forex expert Masahe Morata, “Some people say the greenback’s decline and rebound was not surprising, since U.S. output became very sluggish.” He also stressed that “the market is still very wary of risk-off update, perhaps from North Korea, or from dismal U.S. economic figures.”
Meanwhile, the USD remained unchanged at 109.39 yenJPY= after climbing 1.39 pct as of Monday, the major currency’s most impressive single-day spike since late-January this year.
The USD fell back to a ten-month cellar of 107.320 against the yen on Friday, when Hurricane Irma battered Florida and as money markets anticipated the possibility of another nuclear test in celebration of North Korea’s founding anniversary on September 9.