Dollar drops against the yen following U.S. launching missile strike on Syria

Dollar drops

The dollar dipped against the perceived safe-haven Japanese yen on Friday after the United States fired cruise missiles at a Syrian airbase, heightening concerns of a sharp intensification in the Syrian civil war.

U.S. President Donald trump stated on Thursday that he ordered missile strikes against an airfield in Syria from which a deadly chemical weapons attack was launched.

The dollar index, which measures the greenback against six other currencies, dropped on the day at 100.66, up 0.3 percent for the week.

The dollar lost 0.3 percent against the yen, which tends to rise in times of geopolitical tension or risk aversion, to 110.44 yen, down 0.8 percent for the week.

"The fact that the dollar hasn't broken under 110 on this news shows how strong that level is, but we are still waiting to see Russia's reaction to the U.S. move," said Sumitomo Mitsui Trust senior market economist Ayako Sena.

According to a spokesman from the Pentagon on Thursday, The U.S. military informed the Russian forces of the strike in advance and did not hit sections of the base where the Russians were believed to be present.

She added: "The news of the attack on Syria, and the resulting risk-averse mood, has overtaken the U.S. jobs report as the main focus of the day."

The euro was lower on the day at $1.0643. After the European Central Bank President, Mario Draghi’s comments helped weigh it down to a three-week low of $1.0629 overnight. I was down 0.1 percent for the week.

FAQs

Leave a Reply

Your email address will not be published. Required fields are marked *