© Reuters. The dollar is advancing then that Trump meets with Kim
Investing.com – The dollar reached a peak of three weeks on Tuesday, investors hope to see a positive outcome from the summit highly anticipated between the United States and North Korea, which could potentially ease tensions in the Korean peninsula.
The us president, Donald Trump has begun a historic meeting with the north Korean leader Kim Jong One in Singapore to 09: 00 (01h00 GMT), the two parties seeking to narrow differences on how to end the nuclear stalemate on the Korean peninsula.
Trump tweeted “great to be in Singapore, the excitement in the air!” When he came to Singapore on Monday to meet face-to-face with the north Korean leader.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.17% to 93,72 at 12.40 pm (04: 40GMT).
The pair USD / JPY jumped from 0.25% to 110,32, reaching a peak of three weeks.
As a safe haven, the yen often progresses in a time of political tension and turbulence on the markets. The rise of the dollar against the yen reflects the hope that the meeting of Trump-Kim will be positive for the denuclearization of North Korea.
During this time, the pair USD / CNY rose to CNY6.4044 m. The people’s Bank of China fixed the reference rate of the yuan, the mid-point from which the currency is allowed to trade, to 6,4121 against 6,4064 the previous day.
The next series of clues on the trajectory of the us dollar will likely come from a meeting of the federal Committee of the open market, which will begin Wednesday. The Fed is expected to greatly raise its interest rates for the second time this year, but investors are more focused on the question of whether the central bank will decide whether four interest rate hikes in 2018.
The Bank of Japan will also review its monetary policy at a two-day meeting later this week, but few changes are expected.
The pair USD / AUD dropped to 1,3131 while the Aussie also rose before the summit, U.s.-North Korea. The National Australia Bank was ready to publish its new monthly report on business conditions and business confidence, and the Bureau of Statistics will publish the figures of housing finance from April.