Dollar eases, on track for smallest return in six years By Reuters


By Swati Pandey

SYDNEY (Reuters) – The dollar dipped to a near three-week low against the yen in thin year-end volume on Tuesday as investors favored riskier assets, led by renewed optimism about global growth.

The greenback was off 0.1% at 108.77 against the Japanese yen , on track for its third straight session of losses and within a whisker of Monday’s 108.74, the weakest since Dec. 12.

The (), which measures the currency against a basket of rivals, was flat at 96.728 in early Asian trade.

On Friday, the index had suffered its biggest one-day fall since March, which left its gains for the year at under 0.6%, compared with returns of 4.4% in 2018. It is now on track for the smallest rise since 2013.

Encouraging news on the Sino-U.S. trade deal boosted risk sentiment in currency markets overnight.

The White House’s trade adviser, Peter Navarro, on Monday said the U.S.-China Phase 1 trade deal would likely be signed in the next week, but said confirmation would come from President Donald Trump or the U.S. Trade Representative.

Increased optimism about U.S.-China trade relations and an improved global growth outlook drove investors out of other safe-haven assets like Treasury bonds while the risk-sensitive Australian and New Zealand dollars jumped to five-month highs. [US/]

China’s yuan strengthened a touch in the offshore market to 6.972 on Monday, its highest since Dec. 13. It was last at 6.9780.

Investor appetite for risk also helped drive the euro () to a 4-1/2-month high of $1.121 on Monday. It was last up 0.1% at $1.1209. Signs that the euro zone economy may be stabilizing have lifted the single currency in recent weeks.

Sterling was last treading water at $1.3114 against the dollar after rising 2.8% so far this year. Concerns that Britain is headed for a disruptive “hard Brexit” at the end of 2020 have hurt the pound since mid-December.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link