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Dollar Little Changed Despite Escalating Tensions With North Korea


The dollar is turning in a mixed performance against its major rivals Wednesday afternoon, but is little changed overall, despite rising tensions between the U.S. and North Korea.

President Donald Trump threatened to meet North Korean nuclear tests "with fire and fury." North Korea responded to Trump's comments, claiming that it was "carefully examining" a strike on US Pacific territory of Guam.

Labor productivity in the U.S. increased by slightly more than expected in the second quarter, according to a report released by the Labor Department on Wednesday.

The report said labor productivity climbed by 0.9 percent in the second quarter after inching up by a revised 0.1 percent in the first quarter. Economists had expected productivity to increase by 0.7 percent compared to the unchanged reading that had been reported for the previous quarter.

The Labor Department also said unit labor costs rose by 0.6 percent in the second quarter following an upwardly revised 5.4 percent spike in the first quarter. Unit labor costs had been expected to climb by 1.2 percent compared to the 2.2 percent jump that had been reported for the previous quarter.

A report released by the Commerce Department on Wednesday showed wholesale inventories in the U.S. rose by slightly more than expected in the month of June. The Commerce Department said wholesale inventories climbed by 0.7 percent in June after rising by an upwardly revised 0.6 percent in May.

Economists had expected inventories to increase by 0.6 percent compared to the 0.4 percent growth originally reported for the previous month.

The dollar rose to an early high of $1.1686 against the Euro Wednesday, but has since eased back to around $1.1750.

The French economy is forecast to grow at a steady pace in the third quarter, according to the monthly business survey published by the Bank of France on Wednesday. Gross domestic product is forecast to expand 0.5 percent in the third quarter, the same pace as seen in the second quarter.

The buck reached a high of $1.2967 against the pound sterling Wednesday morning, but has since retreated to around $1.30.

The greenback climbed to an early high of Y110.162 against the Japanese Yen Wednesday, but has since pulled back to around Y109.825.

The M2 money stock in Japan was up 4.0 percent on year in July, the Bank of Japan said on Wednesday, coming in at 978.5 trillion yen. That exceeded expectation for 3.9 percent, which would have been unchanged from the June reading.

by RTTNews Staff Writer

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