Dollar remains solid despite fresh missile test by North Korea

Dollar remains solid

The dollar inched lower against yen on Monday’s session on the back of a flat trading in Asia and the new ballistic missile test launched from Pyongyang, North Korea; Euro also stable on the day.

North Korea launched a short-ranged airborne missile that shortly landed on the sea of the nation’s east coast on Monday. The fresh series of missile test led by the estranged nation has confronted pressure around the world, according to the South Korea’s military.

The U.S. dollar was marginally depreciated by a much stronger Japanese yen at 111.23. However the greenback remained firm regardless of a guarded environment that mostly supports the yen’s “safe haven currency” status. Meanwhile the index that measures the value of dollar relative to its major opposing currencies, the U.S. dollar index, was slightly up at 97.432 versus last week’s 96.797.

Sony financial Holdings’ FX market analysts Kumiko Ishikawa said the market have already shrugged off the continues ballistic missile test’s led by North Korea by now, and the dollar/yen pair major movement is unlikely, except if there is a further increase of the condition. With the closing of the markets in the United States for the Memorial Day, currency pairs were expected to maintain their upright position.

Looking at other currencies, the euro remained stable on Monday at $1.1173. Commodity Futures Trading Commission and Reuters calculated the net long positioning of the common currency was performing well in a span of three years in the week since May 23.

Strong euro zone economy and the easing French political turmoil have lifted projections that the European Central Bank (ECB) may reduce its monetary stimulus, which is immense. Mario Draghi, president of ECB, is set to speak at the European parliament later on the day. He said that there is no sense to deviate from the signals that the bank has already relaxed.

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