Market investors grew increasingly anxious as tensions between the US and Russia continues to spill over into the markets. President Putin has stated that the recent bombing in Syria has seriously damaged relationships between the two superpowers. This sent waves of pressure for the Dollar and the market reacted undesirably.
US equities closed negatively in today’s session as the geo-political concerns heighted. Investors turn to safe haven currencies; the Japanese Yen continues to dominate over the greenback sending it to a 5-month low trading at 108.80 mark. However, the stronger Yen makes Japanese exports more expensive and hinders the overall growth of the economy. This is reflected in the Nikkei as the composite fell over 1.5% and is trading at 18310.
With President Donald Trump repeatedly suggesting that the Dollar was “too strong” at its current market state. He hopes that the Federal Reserve will halt its interest rate progress. However Fed Chair Janet Yellen said that the US economy have grown to a very healthy state and also referring to the recent unemployment rate hitting under 4.5% which is near “Full Employment”.
I believe the US dollar is currently at an important crossroad and domestic policies will add to its unstable market volatility.