Dollar Falls to Its Lowest Level Since January 2015

Traders work on the floor of the NYSE in New York

MSCI's world index, which tracks shares in 46 countries, was down 0.2 percent, after earlier falling as much as 0.57 percent to a one-week low on heightened worries about North Korea.

Bond yields fell overnight immediately after North Korea launched a missile over Japan.

Safe-haven demand weakened as concerns over geopolitical tensions eased after U.S. President Donald Trump's reaction to the North Korean latest missile test on Monday was seen as more moderate than in the past.

Ten-year Treasury yields dropped as low as 2.086 percent, the lowest since November 10, two days after Donald Trump won the USA presidential election, before rising back to 2.10 percent.

The dollar index, which gauges the dollar's strength against a trade-weighted basket of currencies, jumped to 92.48 after It touched a 2 ½ -year low of 91.52 on Tuesday. The U.N. Security Council strongly condemned the launch.

Currency traders are now looking to US non-farm payrolls data for August, due on Friday, following data that showed USA consumer confidence surged to a five-month high in August as the labour market improved and house prices rose.

"The second quarter GDP revisions were strong, and when coupled with the first quarter revisions, the overall level seems relatively impressive for the first half of the year", said Ian Lyngen, head of USA rates strategy at BMO Capital Markets in NY.

"The market tone markedly improved as traders adopted a "this too shall pass" attitude", said Stephen Innes, head of Asia Pacific trading at OANDA in Singapore.

The yen was weaker, with USD/JPY up 0.24% at a two-week high of 110.51, while USD/CHF held steady at 0.9559. Japan's Nikkei 225 rose 0.7 percent to 19,506.54 and South Korea's Kospi was up 0.3 percent to 2,372.29.

CIBC Capital Markets have announced the harvesting of profits from a trade that sought to benefit from the recent appreciation in the Euro.

Japanese retail sales growth slowed in July but still grew for a ninth consecutive month, suggesting the underlying trend for consumption remains healthy.

Chinese blue chips rose slightly, and Hong Kong's Hang Seng climbed 0.9 percent.

USA gasoline futures were up 6.15 per cent at $1.893 a gallon, having hit $1.914, the highest since July 2015.

Global benchmark Brent slipped 0.4 percent to $51.79. USA crude was down 0.35 cents to $46.09.

Their recommendation had been for EUR/USD to rise from 1.1065 to a target of 1.2050.

Gold steadied as the stronger dollar pushed the metal off Tuesday's 9-1/2 month high, but the precious metal remained firmly above $1,300.



Other news