Investing.com – The U.S. dollar was higher on Thursday as U.S. economic growth slowed as expected and comments from China helped ease trade war tensions.
Chinese officials confirmed on Thursday that they are working with the U.S. to schedule talks in September. Chinese ministry spokesperson Gao Feng said the discussions should focus on preventing escalations and resolving trade issues calmly, which reassured investors that there will be no further escalations.
Still, the comments have failed to stop the latest series of U.S. tariffs on Chinese goods from being imposed over the weekend.
Meanwhile, second-quarter U.S. GDP was revised lower to 2%, as expected. The data confirms that the U.S. economy remains solid even in the face of trade uncertainty. The Federal Reserve is expected to cut rates by 25 basis points in September to support the economy in the face of trade risk.
After the data, U.S. President Donald Trump once again criticized the Fed for not cutting rates enough.
“The Economy is doing GREAT, with tremendous upside potential! If the Fed would do what they should, we are a Rocket upward!” he said.
The , which measures the greenback’s strength against a basket of six major currencies, rose 0.3% to 98.368 as of 11:15 AM ET (15:15 GMT).
The Japanese yen, which is seen as a safe haven in times of market turmoil, fell with rising 0.3% to 106.45.
Elsewhere, fell 0.1% to 1.2195 while was down 0.2% to 1.1058.
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