Dollar weakens

May 27,2018

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NEW YORK: The dollar slipped against a basket of currencies and hit a two-week low against the Japanese yen, after U.S. President Donald Trump scrapped a summit meeting with North Korean leader Kim Jong Un and as traders booked profits following the greenback´s recent rally.

Trump called off a historic summit with the North Korean leader citing Pyongyang´s "open hostility," and warned that the U.S. military was ready in the event of any reckless acts by North Korea.

"There is a slightly more risk-off mood in global financial markets as a result of that announcement," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc in Washington.

The yen, which tends to rise in times of market turbulence, hit a two-week high against the greenback.

The dollar was down 0.75 percent at 109.24 yen. "At the same time, it became a broader dollar sell-off, not just a safe-haven move," said Paresh Upadhyaya, director of currency strategy at Amundi Pioneer Investments in Boston.

"I wonder if it´s because the markets are now repricing a degree of geopolitical risk that was starting to unwind in a very dramatic manner earlier in May, as signs of a summit were growing," he said.


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