Dollar Gains Versus Peers on Trade Talk Hopes
The dollar advanced against all other major currencies, lifted by hopes for US trade negotiations that may alleviate some of the tariff burdens recently announced by President Donald Trump’s administration.
The Bloomberg Dollar Spot Index climbs 0.2%, rising for a second day after month-end flows gave the greenback a lift on Friday.
That’s helped the index advance off its low for the year touched earlier this month, as investors repriced US assets on concerns about trade policy and debt sustainability.
It’s likely that in the coming years, “you won’t see the exit away from the US dollar, you won’t see the penalty of high borrowing coming,” said Todd Jablonski, CIO and head of asset allocation at Principal Asset Management. “Inasmuch as there are legitimate reasons for concern around the debt levels, I just don’t see another global alternative”.
In China, officials officials reiterated their plan to strengthen support for the economy. The yuan reference rate was fixed 0.03% lower than the previous trading day, according to the website of the China Foreign Exchange Trade System. Yuan trading is allowed within 2% of the fixing, which is set daily by the central bank.
USD/JPY little changed at 143.67.
EUR/USD down 0.1% at 1.1354.
USD/CHF little changed at 0.8286.
GBP/USD down 0.2% at 1.3289.
AUD/USD down 0.3% at 0.6377.
NZD/USD down 0.3% at 0.5947.
Source : Bloomberg
