Dollar bounces on rise in yields as trade war roils markets
Written by Ray Wei
SENSAVER (Reuters) – The dollar was recovering a little on Thursday thanks to the high US treasury revenues, although the currencies traded in narrow ranges as investors have struggled to determine the impact of the global trade rising on inflation and growth in the United States.
On Wednesday, US President Donald Trump threatened more customs tariffs on the European Union commodities, as the main commercial partners in the United States said they would get rid of the commercial barriers that were already held by him.
High trade tensions and anxiety increased in the confrontation of the recession in the United States, which raised global markets and caused significant fluctuation in the foreign exchange market, with the finest traders between relief and anxiety on Trump’s policy changes.
The markets were quieter in the Asian session early on Thursday, as investors got a break from the main address on American commercial policy.
The dollar rose 0.05 % against the yen to 148.31, as it regained some of its losses earlier in the week when it decreased to its lowest level in five months against the Japanese currency, as fears of economic recession in the United States raised a rush to the Japanese currency as a safe haven.
The Swiss franc is similarly away from the three -month peaks on Monday, and the latter reached 0.8817 per dollar.
The data released on Wednesday showed us that inflation rose slightly less than expected in February, but the relief that he provided may be temporary because the data did not pick up the Trump tariff waterfalls completely.
“The most trusted is the expectations for future inflation and the state of American economic activity, thanks to this to a large extent to the inability to predict the American trade policy,” said James Riley, the Capital Economics Company, said.
“These issues that lead their markets, and gave the report () the report a little new view of any of these.”
But the American treasury’s yields pushed up as traders were betting on inflation below the line, with a continued return for 10 years near the top of one week at 4.3047 %.
The return has not changed for two years slightly at 3.9866 %.
This subsidized dollar and expelling the euro kept away from the five -month summit on Tuesday, as the last unified currency was $ 1.0890.
The pound rose 0.06 % to $ 1.2968, while the dollar index moved away from the lowest level in five months on Tuesday and won 103.57.
The Canadian dollar did not change slightly at 1.4372 Canadian dollars.
On Wednesday, Canada Bank reduced the main policy price by 25 basis points and concerns about inflationary pressures and the growth of the weakest resulting from the uncertainty and the Trump tariff.
“The customs tariff is pressure on inflation on the global economy, which will be a nightmare for central banks … centered bankers are more cautious and maintain what will happen,” said Carol Kong, a currency strategy at the Commonwealth Bank in Australia.
2025-03-13 01:40:00
