The U.S. dollar secured the gains it attained on the previous session on Tuesday after it immediately recouped from euro and the Japanese yen. The easing concerns surrounding North Korea and Hurricane Irma have improved the risk sentiment of investors.
The greenback slumped to a 10-month low last Friday versus the yen at 107.320 yen after Hurricane Irma became a huge threat to the state of Florida. This is also amidst the preparation of financial markets to the founding day of North Korea. However this Tuesday, the dollar remained solid against its Japanese counterpart at 109.345 yen following a rally by 1.4 percent overnight.
Barclays’ senior strategist Shon Kodata said the diminishing concerns on the Korean Peninsula and Hurricane Irma was some of the major factors behind the sudden bounce of the greenback. He added that the attention of the market would likely go back to the fundamentals even if there aren’t any major events set to happen this week that can potentially shift the direction of the currency.
On other currency news, the British pound traded close to the flat line at $1.3172 on the previous close. It hovered near to a one-month high of 90.75 pence per euro overnight. Meanwhile the euro was slightly changed at &1.1962 after dropping 0.7 percent overnight. Euro reached its best level since January 2015 on Friday at $1.2092.
The pound is stronger versus the euro as it was currently supported by expectations that the Bank of England will sound less-dovish on rate hikes on its previous policy meeting.