WASHINGTON (dpa-AFX) - The U.S. dollar drifted lower on Monday, extending recent losses, on rising geopolitical tensions and likelihood of an interest rate cut by the Federal Reserve in the very near futures.
Traders were also looking ahead to the upcoming G-20 summit. The U.S. President Donald Trump and Chinese Premier Xi Jinping are scheduled to meet on the sidelines of the summit. Markets are hoping that the meeting between the leaders will help push forward talks that would help solve the ongoing trade spat between two of the largest economies of the
As the dollar weakened, gold futures rose to near 6-year highs, with investors continuing to rush for the safe haven asset.
The dollar index dropped to a low of 95.97, down by about 0.25% from previous close.
Against the euro, the dollar was down by about 0.25%, at 1.2398.
The British Pound Sterling recovered after early weakness and was down just marginally at $1.2738. Earlier, the sterling had strengthened to $1.2767.
The yen, which weakened to 107.53 earlier in the day, recovered to 107.33, down very slightly from previous close.
The dollar traded weak against the Aussie, losing more than 0.5%, at 0.6962. It was down against the loonie and Swiss franc as well, dropping by 0.3% and 0.45%, at 1.3181 and 0.9721, respectively.
U.S. President Donald Trump told reporters at the White House today that the U.S. does not seek conflict with Iran but said his administration will continue to increase pressure on Tehran until the regime abandons its dangerous activities.
Trump signed an executive order that includes sanctions on Iran's Supreme Leader, Ayatollah Ali Khamenei, as well as the Supreme Leader's Office.
Trump's order will deny Iran's leadership access to financial resources and authorizes the targeting of persons appointed to certain positions by the Supreme Leader or the Supreme Leader's Office.
Also, any foreign financial institution that knowingly facilitates a significant financial transaction for entities designated under the order could be cut off from the U.S. financial system.
The sanctions have been slapped on Iran following Islamic Revolutionary Guard Corps (IRGC) shooting down an unmanned U.S. surveillance drone last Thursday.
The Trump administration has claimed the drone was over international waters when it was shot down, although the IRGC has argued the drone was flying over Iranian territory.
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