Thursday, 12 April 2018 08:28 WIB | CURRENCIES | Indeks DolarDolar AS
The dollar struggled against the yen on Thursday as investors sought shelter in the safe-haven Japanese currency on concerns over the possibility of Western military action against Syria.
The geopolitical tensions shifted some focus away from the U.S.-China trade standoff, with the dollar last trading little changed at 106.810 yen after losing 0.4 percent overnight. The yen often draws demand in times of market turmoil and political tensions.
The dollar had risen to 107.400 yen on Tuesday after comments from Chinese President Xi Jinping calmed fears over a U.S-China trade war, which had gripped global financial markets over the past few weeks.
The respite for the greenback was short lived, however, as focus shifted to the possibility of wider military conflict in the Middle East.
Tensions increased after U.S. President Donald Trump warned Russia on Wednesday of imminent military action in Syria over a suspected poison gas attack, declaring that missiles "will be coming" and lambasting Moscow for standing by Syrian President Bashar al-Assad.
The euro was up 0.05 percent at $1.2375 and on its fifth session of gains, supported this week as comments from European Central Bank officials reinforced views that the central bank is on track to normalize monetary policy.
The Australian dollar was steady at $0.7760 after touching $0.7773, the highest since Mar. 22.
The dollar index against a basket of six major currencies was down 0.1 percent at 89.457 after dipping overnight to a two-week trough of 89.355.
With attention on Syria the dollar did not receive much support from hawkish-sounding Federal Reserve meeting minutes.
All of the Fed's policymakers felt that the U.S. economy would firm further and that inflation would rise in the coming months, minutes of the central bank's last policy meeting on March 20 21 released on Wednesday showed.