Dollar trades cautiously as released economic figures in the U.S. were weak

Dollar trades cautiously

The U.S. dollar traded carefully last Monday following lower-than-expected economic figures from the United States. The sixth ballistic missile test launched by North Korea has influenced the Japanese yen.

According to North Korea’s official KCNA news agency, the country has successfully launched a new missile test on Sunday. This was administered by leader Kim Jong Un as it was targeted at verifying the capability to bring a very heavy nuclear warhead.

The estranged nation launched an airborne missile last Sunday which landed in the sea close to Russia in a firing that Washington called information to South Korea. This is only days after their new leader took office promising to involve Pyongyang face to face.

The index that measures the value of the greenback relative to the value of its opposing currencies, the U.S. dollar index, marginally fell at 99.226 on Monday. Meanwhile on its performance with other currencies, the dollar plunged more than 0.1 percent versus the Japanese yen at 113.28 yen. However the euro was 0.1 percent lower against the greenback.

Daiwa Securities’ chief foreign-exchange strategist Mitsuo Imaizumi says the figures form the economic growth in the U.S. may be fragile, but it is not weak enough to pressure the U.S. currency. Imaizumi added that the missile news from North Korea last weekend raised the yen. Investors are eyeing on the Federal Open Market Committee (FOMC) meeting next June. In regards to the meeting, the Fed is anticipated to incite an interest rate hike for the prior month.

U.S. Commodity Futures Trading Commission and Reuters calculations showed that long positions for net dollar dropped in the week concluded last May 9 to their most depressing level since October.


Leave a Reply

Your email address will not be published.