Dollar gains as Ukraine, Mideast conflicts subside

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Investing.com - The dollar traded higher against most major currencies on Monday after military tensions in Ukraine, Gaza and Iraq subsided, allaying concerns that geopolitical events could threaten U.S. recovery.

In U.S. trading on Monday, EUR/USD was down 0.18% at 1.3386.

Reports that Russia has ended the military exercises it was conducting near the Ukraine border gave the dollar room to rise on Monday in a session void of major market-moving indicators.

Russian President Vladimir Putin said Moscow is working with the International Red Cross to send humanitarian aid to Ukraine, which also gave the greenback support.

Meanwhile in the Middle East, a 72-hour ceasefire between Israel and Hamas in Gaza took effect on Sunday, which gave the dollar further room to rise by allaying concerns that geopolitical tensions will dampen global growth and possibly prompt the Federal Reserve to spend more time analyzing the economy before raising interest rates.

A U.S. decision to launch airstrikes in Iraq to halt a Sunni insurgency also gave the greenback support, as fears that the country was on the edge of chaos ebbed on Monday as well.

Separately, the euro came under pressure due to ongoing expectations that monetary policy will tighten in the U.S., U.K. at a time while the European Central Bank may decide to loosen policy further to steer the euro area away from deflationary decline.

The dollar was up against the yen, with USD/JPY up 0.13% at 102.17, and up against the Swiss franc, with USD/CHF up 0.10% at 0.9063.

The greenback was down against the pound, with GBP/USD up 0.08% at 1.6786.

The dollar was mixed against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.37% at 1.0932, AUD/USD down 0.16% at 0.9262 and NZD/USD down 0.05% at 0.8458.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07% at 81.52.

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This article appears in: Investing , Forex and Currencies

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