x
Breaking News
0

Forex - Dollar index edges up in Asia as Korean Peninsula tensions mount

ForexApr 12, 2017 12:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Dollar index gains

Investing.com - The yen gained slightly in early Asia on Wednesday as data on machinery orders provided a lift in sentiment and demand was supported by safe-haven buying linked to increased tensions on the Korean peninsula with Chinese President Xi Jinping holding a telephone call with U.S. President Donald Trump over the issue.

In Japan, core machinery orders jumped 5.6% year-on-year in February, beating a 2.5% gain seen, though the month-on-month figure rose 1.5%, missing the 3.7% gain expected. At the same time, PPI (producer prices) in Japan rose 1.4% year-on-year in March, a tad faster than the 1.3% rise seen. USD/JPY changed hands at 109.51, down 0.10%. AUD/USD traded at 0.7495, down 0.05%.

China reported CPI for March fell 0.3% as expected month-on-month and a rose 0.9% year-on-year, a tick less than seen. PPI in China irose 7.6% as expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, drose 0.02% to 100.63.
Overnight, the dollar slumped against a basket of major currencies on Tuesday, as the 'flight to safety' sentiment began to set in for investors amid rising geopolitical tensions.

In the absence of top-tier market moving economic data on Tuesday, rising geopolitical events remained front and center, as investors poured into safe-haven assets, after expectations grew the U.S. may take military action against North Korea.

The U.S decided to move a Navy strike group toward the Korean peninsula amid continued missile tests by North Korea.

Meanwhile, President Donald Trump tweeted on Tuesday, "North Korea is looking for trouble" and signalled that the U.S. is prepared to solve the problem on its own, should China decline to offer assistance.

Elsewhere, further signs of ‘a flight to safety’ surfaced Tuesday, after demand for U.S. treasuries soared, which further suppressed yields – the U.S. 10-Year fell to a session low of 2.293.

The slump in the dollar reflected some analysts’ commentary on the short-term trend for the greenback, after Morgan Stanley (NYSE:MS) noted in a research report to clients that “USD positioning is short but warned that “sentiment has improved in recent trading sessions."

Forex - Dollar index edges up in Asia as Korean Peninsula tensions mount
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Kay PARK
Kay PARK May 10, 2017 2:26AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
6ㅒ
Reply
0 0
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email