Dollar index turns lower, hits 1-week trough
Investing.com - The dollar turned lower and hit a one-week trough against the other major currencies on Monday, as U.S. political tensions continued to weigh heavily on the greenback.
Trading volumes were expected to remain light with no major U.S. data to be released throughout the day.
Sentiment on the greenback remained vulnerable following news on Friday that senior White House advisor Steven Bannon had been fired.
Ongoing uncertainty over the economic agenda of U.S. President Donald Trump and doubts that the Federal Reserve will deliver a third rate hike this year have fed into recent dollar weakness.
The yen pushed higher, with USD/JPY sliding 0.38% at 108.73, while USD/CHF dropped 0.39% to trade at 0.9610.
Markets were also still jittery amid sustained geopolitical tensions after a terrorist attack last Thursday in Barcelona killed 14 people and injured 100 others.
Spanish police was still searching on Sunday for the man behind the wheel in the Barcelona van attack, amid growing signs members of the militant group had connections elsewhere in Europe.
Separately, North Korea warned Sunday that joint U.S.-South Korean military exercises set to start Monday will be "adding fuel to the fire" of already heightened tensions with Washington and its allies.
Elsewhere, EUR/USD gained 0.45% to 1.1813, while GBP/USD rose 0.26% to 1.2913.
The Australian and New Zealand dollars turned higher, with AUD/USD up 0.15% at 0.7943 and with NZD/USD gaining 0.33% to 0.7334.
Meanwhile, USD/CAD held steady at 1.2585.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.39% at 93.00 by 10:55 a.m. ET (02:55 p.m. GMT), the lowest since August 14.
Related Articles
Forex - Dollar index holds onto gains in subdued trade
