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Forex - Dollar remains broadly higher in subdued trade

Published 11/09/2017, 15:52
Updated 11/09/2017, 15:56
Dollar still on the upside vs. other majors, no U.S. data on tap
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Investing.com - The dollar remained broadly higher against other majors in subdued trade on Monday, as concerns over the impact Hurricane Irma and tensions with North Korea continued to ease.

Trading was expected to remain quiet with no major U.S. data to be released throughout the day.

The U.S. dollar found some support following an official downgrading of Hurricane Irma’s strength to Category 1 on Monday. The storm pummeled Florida over the weekend after devastating much of the Caribbean.

Massive storm surges have flooded areas across South Florida, while downed trees and power lines have left over 2 million residents without power.

The safe-haven yen and Swiss franc pushed lower, with USD/JPY up 0.0.96% at 108.85 and with USD/CHF advancing 0.84% to trade at 0.9520.

Market participants had been worried about a potential North Korean missile test on Saturday, to mark the anniversary of the founding of the nation.

However,investors were relieved to learn that Pyongyang chose to observe the 69th anniversary of its founding only by honoring the scientists behind the massive nuclear test it conducted last week.

Elsewhere, EUR/USD slid 0.41% to 1.1986, while GBP/USD eased 0.08% to trade at 1.3186.

The euro fell below the $1.20 level after European Central Bank Executive Board member Benoit Coeure said that persistent exogenous shocks to the exchange rate could lead to unwarranted tightening of financial conditions with undesirable consequences for inflation.

The remarks came after ECB President Mario Draghi indicated last week that the bank may start tapering its massive stimulus program this autumn.

The Australian dollar was lower, with AUD/USD down 0.14% at 0.8044, while NZD/USD was little changed at 0.7267.

Meanwhile, USD/CAD edged down 0.19% to 1.2140, not far from Friday's 28-month trough of 1.2059.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.44% at 91.71 by 10:50 a.m. ET (14:50 GMT), off Friday's 32-month low of 90.99.

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