Dollar holds steady as market sentiment improves
Investing.com – The dollar was little changed against other majors in subdued trade on Tuesday, as concerns over Hurricane Irma and North Korea continued to subside and as no major U.S. economic releases were expected throughout the day.
Sentiment continued to improve as Hurricane Irma caused less damage than expected in Florida and as North Korea did not fire missiles over the weekend.
Market participants had braced for additional provocations from North Korea on September 9, as the State celebrated its founding day. But Pyongyang marked the anniversary without further missile or nuclear tests.
In response to North Korea’s sixth nuclear test, the U.N. Security Council voted unanimously on Monday to step up sanctions on the peninsula. Its textile exports are now banned and fuel supplies to Pyongyang are capped.
It was the ninth sanctions resolution unanimously adopted by the Security Council since 2006 over North Korea’s ballistic missile and nuclear programs.
On the other hand, Hurricane Irma continued to hammer the South East of the U.S. on Tuesday, but it lost strength and was downgraded to a tropical storm.
About 7.3 million homes and businesses were without power in Florida, Georgia, South Carolina and Alabama, according to state officials and utilities on Monday.
The safe-haven yen and Swiss franc remained lower, with USD/JPY up 0.46% at 109.90and with USD/CHF gaining 0.30% to 0.9589.
Elsewhere, EUR/USD held steady at 1.1961, while GBP/USD advanced 0.79% to 1.3267 after data on Tuesday showed that UK inflation jumped to its joint highest in five years in August.
Earlier in the day, British lawmakers voted in favor of a proposed timetable for debating Brexit legislation.
The Australian was steady, with AUD/USD at 0.8031, while NZD/USD climbed 0.51% to 0.7291.
Meanwhile, USD/CAD rose 0.25% to trade at 1.2145, but was still within close distance of Friday’s 28-month low of 1.2059.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 91.89 by 10:50 a.m. ET (14:50 GMT).