Currency – The dollar is stable, but the geopolitical tensions persist


© Reuters. The dollar is stable, but the geopolitical tensions persist

Investing.com – The dollar remained stable in the face of a basket of other major currencies on Thursday, but has struggled to make progress because of the prospect of a military strike u.s. over Syria, which has shaken the markets.

The dollar index, which measures the greenback’s strength against a weighted basket based on the trade of six major currencies, was little changed at 89.26 at 03:25 AM (07:25 GMT), surpassing the low of Wednesday of 89.04.

After that a Russian diplomat has said that the forces of his country were going to shoot down american missiles launched in Syria, the us president, Donald Trump has warned Russia to prepare for a military action is imminent in response to a chemical attack alleged in Syria at the end of the week.

The comments of Trump have raised the prospect of a military conflict directly between the United States and Russia in Syria, the escalation of tensions in the Middle East.

The dollar was stable against the yen, with the USD / JPY at 106.85. The yen is often sought by investors in times of market turmoil and political tensions.

The rise of geopolitical tensions has diverted the attention of the fears of a trade war between the United States and China that had gripped global financial markets in recent weeks.

The dollar has not found a lot of support from investors focused on tensions in syria.

The minutes of the march meeting of the Fed showed that the authorities believe that the economy will continue to strengthen, and that inflation will increase in the coming months, but remains cautious about the impact of trade policies and tax administration Trump.

The euro was little changed, with the EUR / USD at 1.2369.

The demand for the single currency continued to be underpinned after comments of the decision makers of the european central Bank at the beginning of the week, underscoring expectations that the bank is on track to normalize monetary policy.

The british pound was stable against the u.s. currency, with the GBP / USD to 1,4184.

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