NEW YORK / Reuters
The dollar fell broadly on Monday on hopes that a US-led strike on Syria would not escalate, rekindling some appetite for stocks and other risky assets and spurred investors to reduce safe-haven holdings of the greenback.
Government data that showed a rebound in US store sales in March failed to lift the dollar which has been pressured by concerns over a trade war between the United States and China, the world’s two biggest economies. “The action may be more limited than previously thought and that’s helped market sentiment,” said Eric Viloria, currency strategist at Wells Fargo Securities in Stamford, Connecticut, said of a missile strike against Syria.
The US, Britain and France said their bombing was aimed at three chemical weapons facilities in retaliation for a suspected poison gas attack in Douma by the Assad regime. For now, the three Western nations signaled there will be no more strikes. Many major currencies were stuck in narrow ranges, with the euro starting the week around $1.23.