The US dollar jumped against the euro yesterday and continued to rise today as the prospects for war in Syria continued to drive investors to safer currencies. The greenback halted the rally against the yen and was retreating versus the Great Britain pound.
The situation in Syria continues to cause wide-spread risk aversion on markets. The Middle Eastern country used chemical weapons last week. The United States threatened to attack in response and it is expected that the NATO will also be involved. Meanwhile, Iran signaled that it will strike at Israel in case of any action against Syria.
The geopolitical risks and uncertainty drives the Forex market right now and the US currency is profiting from risk aversion. It looks like traders have put aside the theme of Federal Reserve stimulus tampering, at least temporary.
EUR/USD dropped from 1.3391 to 1.3337 yesterday and traded at 1.3331 as of 2:52 GMT today. GBP/USD rose from 1.5523 to 1.5539. USD/JPY advanced from 96.99 to 97.62 on the previous trading session and traded near that level on the current session.
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