Investing.com – The dollar rebounded against a basket of the other major currencies on Monday, recovering from its lowest levels in more than two years as tensions over North Korea eased and Hurricane Irma weakened.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% at 91.55 by 03:00 AM ET (07:00 GMT). The index hit a low of 90.99 on Friday, the lowest level since January 2015.
The dollar pushed higher against the safe haven yen, with USD/JPY rising 0.7% to 108.57, pulling back from Friday’s 10-month low of 107.30 after North Korea refrained from an expected missile test at the weekend.
The dollar was also higher against the Swiss franc, which is often sought in times of market turbulence, with USD/CHF advancing 0.66% to 0.9502.
Markets remained watchful ahead of a United Nations Security Council vote on harsher sanctions against Pyongyang later Monday, after its recent nuclear test.
Market sentiment also received a boost after Hurricane Irma struck the U.S. with less force than had been feared.
Investors remained cautious over the possible impact of the storm, which knocked out electricity to more than 4 million homes and businesses in Florida.
The euro was lower, with EUR/USD sliding 0.32% to 1.1997, after rising as high as 1.2092 on Friday, the most since January 2015.
The euro fell below the $1.20 level after European Central Bank Executive Board member Benoit Coeure said that persistent exogenous shocks to the exchange rate could lead to unwarranted tightening of financial conditions with undesirable consequences for inflation.
The remarks came after ECB President Mario Draghi indicated last week that the bank may start tapering its massive stimulus program this autumn.
The dollar was also higher against the Chinese yuan, which retreated from Friday’s 21-month highs.
The yuan weakened following reports that China’s central bank is set to scrap measures it had put in place to support the currency in response to a recent surge in the currency.
The yuan has risen around 6.8% so far this year, more than making up the almost 6.6% decline posted in 2016.