Market Risk Aversion Promoted &Nbsp; &Nbsp; Dollar Exchange Rate Continued Strong On Tuesday.

On Tuesday morning, Beijing time, on Tuesday, North Korea and South Korea launched shelling on the western border coast, and investors chose to enter.

On the other hand, German Chancellor Merkel, speaking at the annual meeting of the German Employers Association on Tuesday, said the euro was facing "an unusually severe test".

After that, the euro rate fell to its lowest level in more than two months.

"The turmoil in the eurozone continues," the Brown Brothers Harriman Ltd monetary analyst said in a Tuesday report. "The dollar exchange rate is rising with the market's search for risk aversion assets, especially after the military conflict on the Korean Peninsula."

As of the end of Tuesday's foreign exchange market, the US dollar index, which tracks six major currencies, rose 79.69 at 79.69 points.

The euro fell to 1.84% against the US dollar at $1.3373.

The euro was trading at $1.3361 against the US dollar, the lowest level since the end of September.

The Swiss franc, also seen as a risk free asset, strengthened against the euro Tuesday, closing at 0.7504 euros, rising 1.01%; the US dollar against Swiss Franc was 0.9965 Swiss francs, up 0.86%.

The yen, which usually benefited from market risk aversion, once lost its focus on Tuesday.

Forex.com analyst Catherine Brooks pointed out that this is mainly due to the geopolitical relationship between Japan and the Korean Peninsula.

The dollar fell to 83.19 yen on Tuesday, down 0.16%.

The pound fell to 1.09% against the US dollar, and the euro fell to 84.74 pence, or 0.76%, against the British pound.

On Tuesday, the US housing sales figures released in October and the third quarter gross domestic product data almost had no effect on the US dollar exchange rate.

Even the announcement of the meeting of the Federal Reserve Open Market Committee, which was widely concerned, did not interfere with the pactions in the foreign exchange market.

Although the outcome of that meeting was expected to cause months of downward pressure on the US dollar.

On Tuesday, it reported that North Korea shelled the Korean islands on the West Coast border, and South Korea counterattacked it.

Peter Frank, an analyst at Societe Generale, pointed out that, given the rapid development of the situation, "if the situation continues to deteriorate, the US dollar exchange rate will continue to rise, and there will be a corresponding trend in the price of a variety of futures, including crude oil and gold."

Analysts pointed out that the situation on the Korean Peninsula also needs constant attention.

The Korean won fell more than 2.5% against the US dollar on Tuesday, which ended at $0.009, or 0.99%.

Ireland's political turmoil continued on Tuesday, and Prime Minister Blaine Cohen continued to seek support for the fiscal measures that might be needed for the 2011 budget and aid plan.

Cowen refused again Tuesday's call for his resignation, but said he would call the general election in January after the budget was approved.

Meanwhile, analysts pointed out that Ireland's budget cutting measures also increased the possibility of other euro zone countries, mainly Portugal and Spain, to accept EU financial stability institutions or IMF assistance.

On the other hand, the European Commission, the European Central Bank and the International Monetary Fund said on Tuesday that Greece's deficit reduction program was progressing smoothly, but warned that the Greek government needed more stringent measures to achieve the goal of controlling the budget deficit below 7.5% of GDP in 2011.