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Forex - Dollar Steady as Trade, Emerging Market Woes Lend Support

ForexSep 06, 2018 03:26AM ET
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© Reuters. Dollar steady as trade, emerging market woes lend support

Investing.com - The dollar was steady against a currency basket on Thursday as concerns over global trade tensions and recent turmoil in emerging markets supported safe haven demand for the greenback.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 95.04 by 03:25 AM ET (03:25 AM GMT), after ending the previous day down 0.33%.

The dollar fell on Wednesday, pressured lower by a surge in the pound which was boosted by reports that both the UK and German governments have abandoned key Brexit demands.

Sterling was almost unchanged for the day, with GBP/USD at 1.2900 after rising 0.45% on Wednesday.

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.

Investors were also eyeing developments in talks between the U.S. and Canada aimed at revamping the North American Free Trade Agreement, amid few signs that deal is close.

The dollar slid lower against the yen, with USD/JPY losing 0.16% to trade at 111.35.

The euro edged lower against the U.S. currency, with EUR/USD dipping 0.13% to 1.1616.

The Australian dollar, widely seen as a barometer of risk, was lower, with AUD/USD down 0.29% to 0.7173, not far from Tuesday’s lows of 0.7143, which was the weakest level since May 2016.

The Aussie failed to find support despite data overnight showing that the country’s trade surplus rose more than forecast in July.

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.

Forex - Dollar Steady as Trade, Emerging Market Woes Lend Support
 

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