Investing.com - The dollar edged lower against a currency basket on Thursday as concerns over the U.S. - China trade war and recent turmoil in emerging markets weighed on market sentiment.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 95.04 by 09:46 AM ET (13:46 GMT).
The dollar was pressured lower by gains in the pound, which remained supported amid hopes for progress on Brexit following reports Wednesday that both the UK and German governments have abandoned key demands.
Sterling continued to remain supported even after Germany denied Thursday that its position on Brexit had changed, with GBP/USD up 0.34% to 1.2947.
Investors remained focused on the U.S. - China trade dispute amid fears that an escalation could be imminent.
U.S. President Donald Trump could slap tariffs on an additional $200 billion worth of imports from China when a public consultation period ends later Thursday.
China has warned that it will retaliate if the U.S. imposes fresh tariffs on its goods.
Investors were also eyeing developments in a second day of talks between the U.S. and Canada aimed at revamping the North American Free Trade Agreement.
The dollar slid lower against the yen, with USD/JPY losing 0.36% to trade at 111.13.
The euro edged higher against the U.S. currency, with EUR/USD inching up 0.09% to 1.1639.
In emerging markets, Turkey’s lira and Argentina’s peso pushed higher against the U.S. currency after recent heavy declines.
Emerging markets have been hard hit by concerns that U.S. policy tightening will pressure countries that have borrowed heavily in dollars in recent years and fears that their export dependent economies could be hit by trade disputes.