Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

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

Published 09/06/2018, 03:26 AM
Updated 09/06/2018, 03:26 AM
© Reuters.  Dollar steady as trade, emerging market woes lend support

© 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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.