Stock Market Watch

Dollar Index Gains As Concerns Over Syria Recede

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The U.S. dollar rose against major traded currencies on Tuesday as investors cut positions on safe-haven bets such as yen and bullion after Russia proposed that it will convince Damascus to let its chemical weapon program function under international scrutiny.

Earlier on Tuesday, Syria’s foreign minister said that Damascus has accepted Moscow’s proposal. The development is expected to prevent any U.S. led military intervention in Syria even as Obama struggles to garner support from lawmakers regarding this matter.

At last check, the DYX Dollar Index, a measure on U.S. dollar’s performance against a basket of six major traded currencies, rose 0.13% to 81.92.

The WSJ$ Index, which uses slightly broader indexing criteria, edged up 0.08% to 74.11.

The yen meanwhile fell 0.61% against the dollar to trade at yen100.19

The yen, which is considered as highly liquid currency, tends to benefit in the times of geopolitical tensions or macroeconomic uncertainty.

Improving global macroeconomic is also supporting the dollar. After releasing robust exports data on Sunday, China on Tuesday said that factory output and retail sales also rose at stronger-than-expected rate in August.

“Geopolitical risks around Syria are a bit smaller and we also had some decent numbers out of China. This is a good combination to go into riskier currencies, so people are moving out of the classic safe havens like the yen and Swiss franc,” said Arne Lohmann Rasmussen, head of FX research at Danske Bank, according to Reuters.

 








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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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