US Dollar Held Steady as Markets Reaction to Geopolitical Situation Was Limited
The US dollar remained stable against major currencies, and held steadily within established trading ranges. The dollar index was flat at 89.75. It has weakened 0.3% so far this month, taking its year-to-date losses to 2.55% extending a theme firmly in place since last year.
The Japanese yen appreciates against the US dollar and the euro during the Asian session on Monday amid growing political risks in Japan, as well as the possible escalation of tension in the Syrian conflict. The yen traditionally considered a safe asset, so the demand for it grows in the case of growing geopolitical uncertainty. The dollar exchange rate is 107.20 yen against 107.35 yen on Friday.
The euro traded around $1.2328 against $1.2331 at the close of the last session. The value of the European single currency is at around 132.15 yen on Monday compared to 132.36 yen the previous day.
The American currency remain below a two-month high, after the market received some clarity after military strikes against Syria by the United States and its allies on the weekend. On Saturday, the United States, France and the United Kingdom launched 105 rockets aimed to three power facilities in Syria. The reaction in the foreign exchange market was limited, as President Trump warned in advance about a possible attack on Syria.