– ‘Bumpy road’ –
“Investors have renewed their interest on the US political overhang as the political landscape continues to weigh heavily on the dollar. Specifically, the long and winding and no less bumpy road to tax reform looks more of a pipe dream now than ever,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
The greenback is at its lowest levels since November and could fall below the 108 yen, analysts warned.
North Korea tensions, which fuelled a global sell-off after Pyongyang tested what it said was a hydrogen bomb Sunday, were eased a little by Trump’s remarks that a US military strike was “not inevitable”.
However, with world powers struggling to agree on a way to address the crisis markets remain on edge, with many observers fearing the North will conduct another missile test on Saturday.