The United States (US) Dollar ticked lower for a second day against major peers on Tuesday, as market jitters from US military action in Venezuela eased and stocks rallied around the world, helped by dovish comments from Federal Reserve officials.
The Euro was up marginally at $1.1729 , the Pound was 0.1% higher at $1.3552 while the Dollar was also a touch softer against the Japanese Yen.
“A little over 48 hours after the US military operation in Venezuela, there are few marks left in the currency market. Early Monday’s flight into Dollar safety proved very short-lived,” said Francesco Pesole, FX analyst at ING.
The impact of the shock US capture of Venezuelan President Nicolas Maduro over the weekend was short-lived across most asset classes with stocks around the world trading at record highs.
That also had ripple effects in currency markets.
“The good performance of equities yesterday, despite geopolitical risk, was, in our view, the primary driver of the unwinding of earlier Dollar gains,” Pesole added.
The Dollar index , which measures its strength against a basket of six currencies, was last trading at 98.25, down 0.1% and extending losses after snapping a four-day winning streak on Monday.
–Reuters–
