Investing.com – The dollar dropped against a basket of major currencies on Monday, as geopolitical uncertainty resurfaced, while strong gains in sterling disadvantage of momentum added in the greenback.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.15% to 93.48.
Geopolitical uncertainty resurfaced after U.S. President Donald trump tweeted over the weekend that years of talks with North Korea over its nuclear program have failed-building, and «the only thing that will work», to put a stop to the isolated nation, the efforts for the development of nuclear weapons.
Minister of defense of Jim Mattis on Monday urged military leaders to «be ready» to military options for President Donald Trump dealing with North Korea, the diplomacy should fail.
«Now it is a diplomatically-led economic sanctions strengthened the effort to try to turn North Korea away from it,» said Mattis. “Now, what will the future bring? Neither you nor I can tell, so is it a thing that the US army can do, and that is that we have to be ready, to ensure that we are the military options that our President can use, if needed.»
The comments come before the annual celebration of the founding of North Korea’s ruling Communist party is scheduled for Tuesday, Pyongyang, in some show of military strength to mark the anniversary were able to show.
Also the add of dollar weakness, a strong rebound in the pound sterling, as the political uncertainty subsided, after the members of the Prime Minister, Theresa May, the Conservative party has rallied around the Prime Minister after the recent criticism from the former Conservative President Grant shapp’s.
GBP/USD rose 0.69% to $1.3156, while EUR/USD gained 0.19% to $1.1754.
USD/CAD stapled 0.06% to C$1.2536, while USD/JPY added 0.06% to Y112.65.