Reply #45: Dollar edges lower as geopolitical tensions weigh

[Ghost Dog]

NEW YORK, July 9 (Reuters) - The U.S. dollar weakened on Wednesday, as oil prices rebounded and geopolitical tensions resurfaced with news Iran test-fired missiles and unknown gunmen attacked the U.S. consulate in Turkey.

Iran's state media reported that the country had test-fired nine long- and medium-range missiles, including one which it had previously said could reach Israel and U.S. bases in the region.

"Geopolitical tensions are slightly weighing on the dollar, although, we haven't seen such big moves and we're still within trading ranges," said David Powell, a currency strategist at Bank of America in New York.

Tensions in the Middle East were further exacerbated after three policemen and three gunmen were killed in an attack on the United States consulate in Istanbul.

The dollar index, which tracks the greenback against a basket of six major currencies, fell 0.2 percent on the day to 72.771 .DXY in early New York trading.

Rising geopolitical concerns also gave safe-haven currencies like the Swiss franc <CHF=> a bid tone. The dollar fell 0.1 percent to 1.0324 Swiss francs and versus the Japanese unit, it was slightly down at 107.37 yen <JPY=>.

Analysts, however, said geopolitics could soon take a back seat once the macroeconomic news-flow picks up after a lack of first-tier economic releases from U.S. or euro zone on Wednesday.

/... http://www.reuters.com/article/marketsNews/idINN0932748720080709?rpc=44&sp=true