The dollar rebounded and neared its highest since 2017, enjoying safe haven demand. The euro dropped to a 28-month low, amid hopes over a US-China trade deal.
China and the United States are still discussing details about upcoming trade talks in October. The countries’ trade negotiators are expected to meet in Washington in about two weeks.
Positive noises from China on U.S. trade talks lifted greenback. Despite the mixed signals on a trade deal the dollar has remained resilient. It has been in demand both when investors get nervous, and a boost to the global economy, seems within reach.
Trump stoked hopes for a trade deal by telling reporters that the United States and China were having “good conversations”. He added that an agreement “could happen sooner than you think”.
The dollar index, which measures it against a basket of other currencies, was last up 0.1% at 99.107. This was its strongest since it reached 99.37 earlier this month, the highest since May 2017.
The euro, by contrast, slipped to $1.0922, touching a 28-month low and eclipsing its lows of earlier this month. Talk of more European Central Bank monetary policy easing peaked. While the Federal Reserve is cutting interest rates, other currencies do not look more appealing than the dollar.
START TRADINGForex – Dollar rebounds on trade hopes – euro drops
Investors struggled to make sense of President Trump’s mixed signals on a trade deal with China. On the Brexit side, investors waited for parliament’s next step to break the Brexit impasse. Opposition leaders gathered to discuss tactics
The biggest mover among the major currencies was the New Zealand dollar, which was last up 0.6% at $0.6299. Kiwi gained after its central bank governor said it was unlikely he would need unconventional stimulus measures.
The trade-sensitive Australian dollar rose 0.2% to $0.6760.
The Japanese yen, perceived as a safe haven, rose 0.2% to 107.59 yen per dollar.
The Canadian dollar was trading 0.2% lower at 1.3272 to the greenback, or 75.35 U.S. cents. The loonie lost ground as the price of oil, one of Canada’s major exports, fell for a second day.
Sterling dropped 0.1% to $1.2336 after plunging more than 1% on Wednesday as conflict over Brexit gripped the British parliament. Sterling fell on Thursday for a second straight day to near 10-day lows.
Gold steadied on Thursday after the previous session’ s near 2% slide. Lower prices tempted some buyers back to the market as uncertainty over the U.S.-China trade war persisted. But a firmer dollar capping gains. Spot gold showed signs of recovery on Thursday, rising 0.3% at $1,507.86 per ounce. U.S. gold futures were up 0.2% at $1,514.80 per ounce.
Oil prices swung in and out of the red meanwhile with Brent fetching $62.52 per barrel and U.S. crude at $56.50 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money