IV:Dollar extends losses vs. yen amid Syria tensions
Investing.com - The dollar extended losses against the yen on Tuesday and was higher against the other major currencies, amid concerns that the U.S. is growing closer to taking military action against Syria’s government.
During European late morning trade, the dollar fell to session lows against the yen, with USD/JPY down 0.74% to 97.78.
Safe haven demand was boosted after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.
Meanwhile, uncertainty over how soon the Federal Reserve will start to reduce stimulus measures continued after data on Monday showed that U.S. durable goods orders fell more than expected last month, raising doubts over the economic recovery.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
The dollar was higher against the euro, with EUR/USD slipping 0.18% to 1.3346.
The euro briefly touched intra-day highs after a report showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
The dollar was near session highs against the pound, with GBP/USD losing 0.41% to trade at 1.5509.
The dollar was lower against the traditional safe haven Swiss franc, with USD/CHF losing 0.17% to trade at 0.9214.
Elsewhere, the greenback stronger against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.85% to 0.8950, NZD/USD tumbling 0.92% to 0.7779 and USD/CAD climbing 0.24% to 1.0526.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 81.50.
Investors were looking ahead to a report on U.S. house price inflation, as well as closely watched data on U.S. consumer confidence later Tuesday.
