Forex – Dollar Rebounds Amid Fading North Korea Risks

Investing.com – The dollar recovered slowly in Asia on Wednesday morning as the safe-haven yen retreated against the greenback on risk-on sentiment that gave other Asian currencies a lift.

Over in Asia, the developments in the Korean peninsula and attempts to end the political scandal in Japan were risk-on developments that prompted investors to bet on risk assets.

The that tracks the greenback against a basket of six major currencies last stood at 88.92 at 11:50PM ET (03:50 GMT), down 0.04%, testing the 90 level. It recovered from a one-month low at 88.59 on Tuesday.

The tariffs imposed by the U.S. government on China sparked global fears of a trade war and hampered the dollar, but the dollar recovered amid hopes that the U.S. and China would begin negotiations. Investors also await the U.S. GDP growth data of the fourth quarter due on Thursday.

The South Korean won was the best performer in the Asian market, with the pair trading at 1,067.06, down 0.75%. The won surged against the dollar amid reports that confirmed North Korea’s leader Kim Jong-un’s visit to Beijing.

During his first known trip outside of the country, Kim said he was willing to give up nuclear weapons and hold a summit with the U.S., signaling the easing geopolitical tensions in East Asia.

The pair gained 0.17% to 105.52. The pair bounced back from the 104 level as the yen declined amid signs of an improving geopolitical situation with North Korea.

Reports said Japan’s Prime Minister Shinzo Abe is preparing for a meeting with the U.S. President Donald Trump in April to hold talks and develop a strategy ahead of a proposed meeting between North Korean and US leaders.

In China, the People’s Bank of China (PBOC) set the fix rate of yuan against the dollar at 6.2785 versus the previous day’s 6.2816. The pair eased 0.12% to 6.2744. The yuan continued to strengthen against the greenback.

Reports that confirmed North Korean leader Kim Jong-un met with Chinese President Xi Jinping caught some attention. Xi said China will be working with North Korea to “make new contribution to regional peace, stability and development.”

Elsewhere, the pair traded at 0.7695, up 0.18%. Australia’s HIA new home sales data revealed on Tuesday came in at -0.7%. The lackluster economic figures kept the Reserve Bank of Australia in a wait-and-see holding pattern.

Disclaimer:
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.