Dollar Broadly Lower after Strikes on Syria

On Monday among expectations that U.S.-led missile strikes on Syria on Friday would not lead to a broader escalation in the conflict there, the dollar was broadly lower against a currency basket.

The measure of the greenback’s strength against a basket of six major currencies, which is U.S. dollar index, was down 0.3% to 89.24 by 05:57 AM ET (09:57 AM GMT).

Relief that the missile strikes on Syria did not prompt a response from Russia, Syria’s main ally, buoyed market sentiment but markets remained on the lookout for any signs of immediate military escalation of the conflict.

Investors also remained cautious while the U.S. prepared to announce a fresh round of economic sanctions on Russia related to its involvement in Syria’s use of chemical weapons.

The military strikes were made in response to a suspected chemical-weapon attack on civilians in Damascus and were the largest intervention yet by Western countries against Syrian President Bashar al-Assad.

With USD/JPY down 0.21% to 107.17, the dollar was lower against the yen. The safe haven yen is often sought in times of market turmoil and political tensions.

With EUR/USD rising 0.32% to 1.2368, the euro rose to the days higher against the softer dollar.

The pound rose to fresh ten-week highs, with GBP/USD climbing 0.51% to 1.4310 among expectations for a rate hike by the Bank of England as soon as next month.

On Tuesday, investors were looking ahead to the latest UK jobs report, followed by inflation on Wednesday and retail sales on Thursday which could cement expectations for a rate hike.

Elsewhere on the economic calendar, the U.S. was to release data on retail sales later in the day. /

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