Investing.com – The U.S. dollar rose against a basket of major currencies weighed down by a falling euro after European Central Bank President Mario Draghi warned that euro area growth was waning.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.55% to 96.34.
Draghi warned “the risks surrounding the euro area growth outlook have moved to the downside on account of persistent uncertainties."
The downtick in growth was related to a host of issues, including "geopolitical factors and the threat of protectionism, vulnerabilities in emerging markets and financial market volatility,” Draghi added.
The dovish remarks arrived after the European Central Bank left its benchmark rate unchanged, with Draghi adding that rates could be kept lower for longer should economic frailties in the region continue.
EUR/USD fell 0.70% to $1.1301.
GBP/USD fell 0.24% to $1.3036 as downside momentum in the pair has been limited by growing expectations the U.K. will avoid leaving the EU without a trade deal, even as analysts urged caution.
Analysts at BNP Paribas said they believe the UK parliament "will be unable to find a way through the current logjam, and that a second referendum is the most likely ultimate outcome. But they said, "We would caution that no deal has not been ruled out. Nor is extension of Article 50 guaranteed without a good reason."
USD/JPY rose 0.06% to Y109.65 as demand for yen on the back of U.S.-China trade jitters, kept a lid on gains in the pair.
In an interview with CNBC, Commerce Secretary Wilbur Ross shook investor sentiment on trade, conceding that the U.S. was still "miles and miles" from a trade deal with China.
USD/CAD gained 0.11% to C$1.3353.c
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