Dollar Softens With Increased Risk of Pyongyang
By Daisy Joseph
The US dollar has been declining the whole week, losing its gains of the previous week. On Friday, the Dollar eased up slightly, which was good news for the market. The tension surrounding US actions against North Korea has encouraged the investors to look for another safe haven, like the Japanese Yen. The dollar index, which was declining in the past few days steadied at 100.590. It has lost 0.6% in the week, but the day was better.
Trump’s comment on the North Korean operations has raised concerns among the investors. He called North Korea as a problem and has said that US will take actions against Pyongyang. Trump expects support from Beijing after his meeting with the Chinese president. Donald Trump was accusing China of currency manipulation all through his election campaigns. However, he has recently said that he doesn’t consider China as a currency manipulator.
The tension in the market further intensified as the US military claimed that the mother of all bombs was dropped in the tunnels and caves of Eastern Afghanistan. This military move was supposed to wipe out the Islamic State in the region. However, the officials have commented that the non-nuclear device dropped earlier is a warning to North Korea to show the power off the United States. This news comes amidst rumors that Pyongyang is getting ready to test a nuclear device soon.
The USD gained 0.1% against the Yen, which was trading at 109.15. Even though it is 1.7% lesser than the past week trade values, it is still considered as a recovery for the dollar.
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