Forex – Dollar Slips Against Currency Basket after Rebound


© Reuters. Dollar Slips Against Currency Basket after Rebound

Investing.com – The dollar slipped lower against a basket of the other major currencies on Tuesday, following a strong rebound on Monday as tensions over North Korea waned and concerns over the impact of Hurricane Irma eased.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.17% to 91.81 by 03:37 AM ET (07:37 GMT).

The index rebounded 0.65% on Monday after slumping to a more than two-year low of 90.99 on Friday.

The dollar was slightly higher against the traditional safe haven yen, with USD/JPY rising 0.11% to 109.51 after climbing 1.06% on Monday.

Market sentiment continued to be underpinned by relief that North Korea did not conduct another nuclear test or weapons test over the weekend as some had feared.

Investors were also relieved as it appeared that insured property losses from Hurricane Irma were expected to be smaller than initially anticipated.

The euro pushed higher against the dollar, with EUR/USD rising 0.21% to 1.1976, pulling away from Monday’s low of 1.1947.

Sterling was also higher against the dollar, with GBP/USD rising 0.3% to 1.3204 amid speculation that the Bank of England could strike a more hawkish tone on interest rates at its upcoming policy meeting on Thursday.

The pound was a touch higher against the euro, with EUR/GBP slipping 0.13% to 0.9069.

Elsewhere, the dollar was steady against the Chinese yuan, which was holding below Friday’s 21-month highs.

The yuan weakened on Monday following reports that China’s central bank is set to scrap measures it had put in place to support the currency in response to a recent surge in the currency.

The yuan has risen around 6.8% so far this year, more than making up the almost 6.6% decline posted in 2016.

Leave a Reply