Greenback Rebounds on Easing North Korea Jitters.The U.S. dollar turned positive against a basket of major rivals as traders brushed aside concerns surrounding a North Korean missile launch over Japan. In the wake of the sharp swings seen in the dollar against major currencies on Tuesday, it is difficult to have a clear view on the dollar’s near-term outlook, Andrew Bresler said, deputy head of sales trading in Asia – Pacific for Saxo Markets in Singapore, adding that U.S. economic data would be a focus in coming days. The dollar index last stood at 92.337, having recovered from Tuesday’s low of 91.621, its lowest level since January 2015.
Franc Benefits As Investors Exit Other Safe Havens. The Swiss franc continued to be the main beneficiary of current risk-off vibes as the yen dipped due to the missile landed just off Japan’s northern coast and other safe-haven rivals also returned their recent gains.
Dollar Recovers From Its 4-Month Low. The dollar held steady against the yen on Wednesday, having recovered from 4-1/2 month lows, as concerns over North Korea’s latest missile test receded for now. North Korea’s launch on Tuesday of a ballistic missile over Japan’s northern island of Hokkaido had initially spooked investors, triggering a drop in U.S. bond yields and a slide in the dollar versus the yen.
Euro Holds Steady, Down From Tuesday’s 2-1/2 Year Peak. The euro held steady at $1.1973, having retreated from Tuesday’s high of $1.2070, which was the euro’s strongest level since January 2015.
Commodities slightly lower. Commodities ended mostly in the red for the trading session, with gold giving back some of its intraday safe-haven gains and crude oil still being dragged lower by Harvey.
Oil Dips As U.S. Floods Cause Large-Scale Refinery Shutdowns. Oil prices slid on Wednesday as refinery shutdowns in the wake of Hurricane Harvey cut U.S. demand for crude, the most important feedstock for the petroleum industry. The oil-related Loonie was mostly lower against its peers due to the standstill in the U.S. oil industry and weaker risk appetite.
