020 7898 0500The dollar first looked as if it was managing to hold on to some of its recent gains after hawkish comments from Federal Reserve members Bill Dudley and James Bullard about reducing the trillions in government bonds and the mortgage-backed securities it continues to hold.
However, as the day progressed, the dollar began to drop off. Traders moved out of their dollar positions and into the safe-haven Japanese Yen. The main reason for the concern is the general build-up of geopolitical risk, with the possibility that the US may take action against Syria and/or North Korea.
It remains to be seen whether the continued missile testing by North Korea and the chemical weapons attack on civilians by the Syrian government will prompt further action.
