ollar steadies after pondering North Korea headlines, U.S. policies in focus
The dollar steadied on Tuesday after investors took in the latest headlines on tensions in the Korean Peninsula before turning their focus toward U.S. monetary and fiscal policies.
The U.S. currency was flat at 109.780 yen
The euro was flat at $1.1895
"The market looks to have already priced in North Korea's nuclear test. While caution towards the North conducting another missile launch is limiting the dollar's upside, at least the market can be mentally prepared for it," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
South Korea's defense ministry said on Monday it was still seeing signs that North Korea plans to launch more ballistic missiles.
"Meanwhile, there will be other factors this month that could ultimately support the dollar, such as the Federal Reserve's policy meeting and upcoming discussions over the U.S. debt ceiling," Ishizuki at Daiwa Securities said.
The U.S. Treasury Department has a Sept. 29 deadline to raise the debt limit, a legal cap on how much the U.S. government is allowed to borrow.
Only the U.S. Congress can raise the debt limit and expectations have risen that the ceiling would not affect Federal efforts to clean up after Hurricane Harvey.
The Swiss franc was a touch weaker at 0.9585 franc per dollar
The Australian dollar was up 0.1 percent at $0.7948