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Forex Market Update: Yen Gains Sharply Against the Dollar Amid Rising Concerns Over Possible Military Intervention in Syria

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Rising concerns over possible U.S. military intervention in Syria hammered global equities on Monday even as safe-haven currencies such as yen and dollar along with bullion and crude oil prices soared.

The dollar index, a gauge on U.S. unit’s performance against a basket of six major currencies, rose 0.10% to 81.47.

The yen, which is considered as the most liquid currency in the times of macroeconomic uncertainty was last up 1.02% against the U.S. dollar to trade at 97.49 yen.

Earlier on Monday, the U.S. Secretary of State, John Kerry said that the Obama administration believes the Syrian government used chemical weapons against its own people last week, killing thousands. He added that the Whitehouse believes that Assad’s government should be held accountable for this heinous act.

The remark fanned concerns that the U.S. military could take action against President Bashar-al-Assad’s regime.

“Certainly there hasn’t been any panic but with the headlines out there, there has been some risk-off trading,” said Greg Matwejev, director, FX Hedge Fund Sales and Trading at Newedge, according to Reuters.

Even a strong economic data from Europe’s growth engine, Germany, could not support the euro.

Earlier today, the German Ifo Index, a gauge on business sentiment, for August showed a highest reading since April 2012. The ifo index rose to 107.5 in Aug, which was a better-than-expected reading and fourth successive monthly gain.

The euro was last down 0.25% against the dollar to trade at $1.3337.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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