The greenback ticked higher against most of the other major currencies on Friday but still remained on track for a weekly loss.

North Korea conducted its fifth and biggest nuclear test and said it had mastered the ability to amount a warhead on a ballistic missile, retching up a threat that its rivals and the United Nations have been powerless to contain. It is said to be more powerful than the Hiroshima bomb, according to some estimates, and drew condemnation from the US as well as China. This test has raised the demand for safe havens like gold, but the dollar was unaffected.


The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies ticked up to 95.19.

USD/JPY was up 0.47% to 102.95 amid investor caution after North Korea announced that it had carried out a nuclear test, while AUD/USD was down 0.79% to 0.7582.

USD/CAD rose 0.5% to 1.2998 even after data showed that the country’s unemployment rate ticked higher in August. Statistics Canada also said that the unemployment rate rose 0.1 percentage points to 7.0% last month, but the Canadian economy added a larger than forecast 26,200 jobs last month.

NZD/USD lost 0.65% to trade at 0.7350, EUR/USD was steady at 1.1254, and GBP/USD changed little at 1.3302.

The dollar could extend its gains even further, after Richmond Federal Reserve’s President Jeffrey Lacker made a strong case for a rate hike this month and the three other Fed members will speak publicly on Friday.

According to Oanda’s senior market analyst Craig Erlam, “A large number of policy makers appear to be coming round to the idea of a rate hike, even those that in the past have typically been quite dovish.”

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