Forex – Dollar Extends Gains as Syria Tensions Ease


© Reuters. Dollar extends gains as Syria tensions ease

Investing.com – The dollar rose to the day’s highs against a basket of the other major currencies on Thursday as market sentiment recovered after U.S. President Donald Trump toned down his threats of military action in Syria.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41% to 89.59 by 09:20 AM ET (13:20 GMT), pulling further away from Wednesday’s two week lows.

In his latest tweet, Trump said that a military strike on Syria after a suspected chemical weapons attack on civilians could come

Financial markets had slumped on Wednesday after Trump warned Russia of imminent military action in Syria, declaring that missiles “will be coming”.

Rising geopolitical tensions had pulled focus away from fears over a , which had gripped global financial markets in recent weeks.

Trump also denied a report that he had planned to fire late last year. Mueller is investigating allegations of Russian meddling in the 2016 U.S. presidential election.

The dollar found support after Wednesday’s minutes of the showed that officials believe that the economy will continue to firm and that inflation will rise towards their 2% target in the coming months.

Some investors believed the minutes bolstered the case for a faster pace of monetary tightening by the U.S. central bank.

The minutes also showed that officials remained wary about the impact of the Trump administration’s trade and fiscal policies.

The dollar gained ground against the yen, with rising 0.43% to 107.24 after ending the previous session down 0.37%.The safe haven yen is often sought out by investors in time of market turmoil and political tensions.

The euro fell to the day’s lows, with down 0.43% to 1.2314.

Earlier Thursday the minutes of the March meeting showed that policymakers are concerned over the risk of a full-blown trade war with the U.S. and the potentially harmful impact of the strong euro.

Meanwhile, the pound edged higher against the U.S. currency, with last at 1.4193.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments