The U.S. dollar gained momentum on Monday’s opening as it was far away from is declines against a basket of currencies following the absence of ballistic missile launches from the hermit state over the weekend.
The greenback rose as high as 0.5 percent versus the Japanese yen to 108.38 yen. It is currently away from a ten-month low it notched on the previous session. The safe-haven currency benefits from political and economic crisis because Japan is the biggest creditor in the world.
Instead of firing another missile, North Korea celebrated its 69th anniversary of its founding last Saturday as they honored the scientist behind the nuclear tests it launched on the previous week. Mizuho Securities’ chief forex strategist Masafumi Yamamoto said the rising concerns surrounding the Korean Peninsula has been the main factors the pressured the greenback.
However he added that the effects of Hurricane Irma would not have a long term impact as the dollar/yen pair under the 108 yen would not be a good level to buy, but expectations regarding the United States coming up with a tax reform propped up the country’s growth this 2018.
The index which measures the value of the greenback against its major opposing currencies, the U.S. dollar index, edged higher by 0.2 percent at 91.524. The index dropped to a 2-1/2 low of 91.011 on the previous trade. Dollar short positions will likely set the stage for an alteration according to some analysts.
The net short position of the dollar’s value was $10.89 billion in the week, higher compared to last week’s $10.28 billion.