Dollar pulls back from six-week low but tariff tensions persist

Written by Iqbal Ahmed

New York (Reuters) -The US dollar rose on Tuesday, as it recovered from its six -week low levels against the euro, even when investors remained concerned about the possible economic damage resulting from the trade war launched by the administration of President Donald Trump.

“We had a large sale in dollars, and it might bounce a little bit today … I don’t think there was a lot of new news to say that the dollar had turned into any kind of meaningful ways,” said Mark Chandler, Senior Market Expert at Bannockburn Global Forex LLC.

“I would like to say that the bounce is still somewhat restricted and somewhat limited,” he said.

The dollar rose 0.9 % against the yen at 144.00. The euro decreased by 0.6 % to $ 1.1371, after it touched a six -week increase at $ 1.1454. The data earlier showed inflation in the euro area, slowing down less than the goal of the European Central Bank of 2 %, supporting expectations to reduce the rate later this week.

For this year, the dollar decreased by 9 % against the euro.

While global stock markets have been widely stumbled from an early sale in April following Trump’s threats from Trump’s threats, Greenback remains compressed.

American duties are scheduled to double on imported steel and aluminum to 50 % starting from Wednesday, on the same day that the Trump administration expects the two countries to make their best offers in commercial negotiations.

Treasury Secretary Scott Bessin said on Sunday, although there was an angry refusal from the Chinese Ministry of Commerce on the accusations of the United States, which violated the trade agreement on Monday that Trump and Chinese President Xi Jinping soon communicated to settle commercial differences.

“Trade developments remain decisive. Reports indicate that China is gaining influence over the United States by controlling the rare chips and land supply chains,” said Francesco Pissol, a strategic expert.

He said: “Trump and Xi Jinping will speak this week, and direct conversations have sometimes eased tensions. This leaves room for a positive surprise that can help the dollar at one time this week.”

On Tuesday, the data showed that job opportunities increased in April, but workers’ demobilization was taken in a move with the slowdown in the labor market amid an economic view of the tariff.

Federal reserve officials argued on Tuesday again with caution in monetary policy with the continued trade war of Trump to pump large amounts of uncertainty and the risk of economic weakness in the outlook.

Financial concerns also led to the emergence of a broad topic “Selling America” ​​that has witnessed dollar assets from stocks to treasury bonds that have decreased in recent months.