Supported by the easing concerns over the political turmoil in Italy, the euro held firm on Tuesday. The euro was seen settling at $1.1687 EUR=, which hovers near its two-week high of $1.1745 capped on Monday, and inches away from its 10-month low of $1.1510 reached a week ago due to the increasing concerns over the rising political tension in Italy last week.
This was as investors and analysts’ concerns began to recede on the formation of a coalition in Rome, as Giovanni Tria, Italy’s new Economy Minister announced that none of Italy’s two anti-establishment parties wanted to leave the eurozone and neither does Giovanni Tria himself. This suggested a positive insight towards investors, lifting and reinforcing the single currency.
Meanwhile, the United States dollar extended its gains against its Japanese counterpart. The greenback was seen settling at 109.95 yen JPY=, which was 0.1% higher from its previous settlement and inches away from its five-week low of 108.115 yen capped last week.
The stance of the greenback was influenced by the recent U.S. employment data published on Friday which suggested investors and analysts that the Fed will announce a three more interest rate hikes this year, after its anticipated policy meeting next week. However, analysts and investors are still concerned on the intensifying trade war pressure over the U.S. and other major trading economies around the world.