Dollar remains lower on Barcelona attack, U.S. political woes
Investing.com - The dollar remained broadly lower against the other major currencies on Friday, as a series of terrorist attacks perpetrated Thursday evening in Spain continued to dominate market sentiment, while ongoing U.S. political tensions also weighed.
The yen and Swiss franc were higher, with USD/JPY down 0.48% at 109.03 and with USD/CHF slipping 0.19% to trade at 0.9613.
Demand for the safe-haven currencies strengthened after a van rammed into pedestrians in a crowded tourist area of Barcelona on Thursday evening, killing at least 14 people and injuring 100 others.
Shortly after, a second attack was perpetrated in Cambrils, a coastal town south of Barcelona, where police said they killed five attackers.
So far three men have been arrested as country-wide anti-terror operations remain underway, according to local officials.
The Islamic State claimed responsibility for the incident, though the claim has not been verified.
EUR/USD edged up 0.13% to 1.1738, off the previous session’s three-week low of 1.1662, while GBP/USD held steady at 1.2876.
Sentiment on the greenback remained vulnerable amid concerns U.S. President Donald Trump will not be able to implement his agenda, as he faces mounting opposition including from within his own political party.
Eight chief executives quit two business advisory councils on Wednesday, in protest over Trump’s controversial remarks on weekend violence in Virginia.
Republican Senator Bob Corker also made headlines this week when he slammed Trump's handling of the protests in Charlottesville, saying that the President "has not yet been able to demonstrate the stability nor some of the competence that he needs to demonstrate in order to be successful,."
The dollar had already weakened after the Federal Reserve’s July policy meeting released on Wednesday showed that policymakers remain concerned over low levels of inflation, which could mean the central bank may avoid raising rates again this year.
The Australian and New Zealand dollars remained stronger, with AUD/USD up 0.37% at 0.7915 and with NZD/USD climbing 0.52% to 0.7321.
Meanwhile, USD/CAD edged down 0.17% to trade at 1.2658.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 93.47.
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