US Dollar Rises on Hopes That Trade War Can Be Averted
The US dollar intensifies as the danger of a trade war between the US and China declined after economic adviser to President Donald Trump Larry Kudlow said that the proposed tariffs on China may not actually enter into force and added that there is no trade war between the US and China.
The US dollar index, which measures the strength of the dollar against six major currencies, rose by 0.16% to 89.92. The US currency also strengthened against the Japanese yen by 0.19%, to the level of 106.98. Against the Swiss currency, another perceived safe haven along with the yen, the dollar was little changed at 0.9609 franc after rising 0.2%.
The euro fell by 0.11% against the US dollar, with EUR/USD trading at 1.2264. The common currency still remained within reach of a two-week low of $1.2254 plumbed on Tuesday after a survey showed the Eurozone's manufacturing boom stumbled for a third month in March as optimism waned and demand ebbed.
The US dollar was supported by a stronger than expected employment report. ADP data showed yesterday that private companies added 241.000 positions in March. The report was above the estimates for 205.000 growth and marked the fifth straight month that private payroll growth topped 200.000.