The U.S.’ currency has stumbled yet again this week because of the ongoing tremors and ongoing debacle between them and North Korea. The greenback manages to lose some more this week after it slides down last Friday due to the lackluster U.S. employment data; now, the dollar remains unstable and low against major currencies.
According to most statistics, the greenback’s price is close to a two and a half year low as the nuclear tremors from North Korea continues to haunt the United States and in return weighing down the currency since late last August.
Dollar Index Price
The dollar index, which measures the greenback’s strength against major currencies, was dwindling down and decreases by 0.2% at 92.65 and sticks closely to devastating lows that were mirroring figures from last 92 weeks to be specific. The unimpressive U.S. employment data also manages to conjure some pressure for the currency’s performance, weighing it further down.
The U.S. Labor Department had reported last Friday that the local economy manages to put up as much as 156,000 jobs last August; the bitter end of the report was that the unemployment rate that manages to increase by a total of a whopping 4.4%. The figures of new jobs were also dismaying, economists and analysts were expecting a total of 180,000 new jobs and for the unemployment rate to increase by only 4.3% for last month.
The report also suggested that the Fed showed more reluctance on adding another rise in the interest rates just before the year ends. On the other hand, the geopolitical crisis continues to ripple until this week, prompting a massive flock of investors on safe-haven currencies.
Investors Hedges on Safe Haven Currencies
As geopolitical crisis and economic downturns hunt the dollar, investors have turned to several currencies to cope up with the massive loss; most of them favored the Japanese currency yen and some did buoy for the Swedish frank.
According to the Commerzbank’s strategist, “Rising geopolitical tensions have pulled the dollar below the 110 yen levels and though we are surprised by how events have unfolded in the last 48 hours, markets are unlikely to react much to this unless this escalates into a conflict,”
The USD/CHF was trading at a low 0.9574 which was down by a hefty 0.76% after the greenback’s retreat. On the other hand, the USD/JPY was also trading at incremental losses which were tallied to be at the 0.58% at 109.61. Some more currencies like the euro and pound were also up against the weak dollar.
The euro manages to stay ahead of its fierce competitor as it increases by 0.40% at 1.1907, and the pound also settling and stabilizing at 1.2956 after weaker construction activity last August hunts the currency.
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!