The dollar started the week with a weaker performance as it slid against other Asian currencies, losing the initials gains it garnered last week.

The US Dollar Index, which gauges the strength of the greenback against a basket of other major currencies, declined during the Monday morning trade in Asia after reaching this year’s high of 94.21 on Friday.

The market absorbed the developments over the US-North Korea summit.

The US dollar Index last stood at 93.87 or 0.36 percent lower.

Geopolitical news remains the main directional driver for the US dollar and the yen. US President Donald Trump seemingly confirmed the continuation of his meeting with North Korean leader Kim Jong-Un, saying it was back on track a few days after the sudden cancellation of the meeting.

“Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong-Un and myself,” Trump said in one of his tweet on Sunday afternoon.


“I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day,” added Trump. “Kim Jong-Un agrees with me on this. It will happen!”

Meanwhile, Kim Jong-Un agreed with a discussion with the US, according to South Korean President Moon Jae-In, who held a meeting with Kim on Saturday after the North Korean leader requested for a casual meeting.

“Kim, once again, made clear his intent on complete denuclearization of the Korean Peninsula,” said Moon in Seoul. “Kim said he’ll end the history of war and confrontation and cooperate to bring peace and prosperity through a successful North Korea-US summit.”

After the preliminary reaction to the changes in geopolitical concerns, dollar traders are also keeping close tabs on economic data to be released this week in the US. The data will include the GDP growth figures, which will released on Wednesday, and the Non-Farm Payrolls report, which will be released on Friday.

The USD/JPY pair increased 0.02 percent to 109.40. Even if the pair rose slightly in late morning trade, risk aversion spurred demand for the yen overall. Investors who have bought the yen to sidestep risks could still sell out the currency if tensions between the US and North Korea becomes squashed.

Meanwhile, in Australia, the AUD/USD pair perked up 0.32 percent at 0.7571.

The People’s Bank of China set the reference rate for the yuan against the dollar, which is the mid-point from which the currency is allowed to trade, at 6.3962 against the previous day’s 6.3867. The USD/CNY pair was flat to trade at 6.3891.

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