Dollar Edges Lower as Greenland Concerns Ease, Data Back in Focus
The U.S. dollar fell slightly on Thursday ahead of key economic data, as the so‑called ‘Sell America’ trade faded after President Donald Trump dropped tariff threats and ruled out seizing Greenland by force.
The greenback recovered versus the euro on Wednesday on Trump’s remarks, after losing a bit less than 1% between Monday and Tuesday.
The Australian dollar rose to a 15-month high, buoyed by data showing an unexpected decline in the jobless rate.
The yen remained under pressure after Japanese Prime Minister Sanae Takaichi this week called a snap election and pledged measures to loosen fiscal policy.
Trump’s threat to levy tariffs on allied nations resisting his ambition to control Greenland had spooked markets, triggering a broad selloff of U.S. assets. Still, some analysts said there was little evidence of a real move out of the U.S. dollar.
"This whole argument about European investors selling U.S. assets is very hard to sustain," Bob Savage, head market strategist at BNY, said.
"This isn't a ‘sell America’ story, it's a risk‑management story," he added. "We’re just seeing more hedging because volatility has risen after being at very low levels at the end of last year."
The Aussie also vaulted as much as 1% to its highest since July 2024 at 108.03 yen .
The Japanese currency weakened 0.2% at 158.68 per U.S. dollar , near last week's 18-month trough of 159.45.
Source : Reuters.com
