U.S. Dollar Edges Up Against Yen

The dollar on Thursday edged up against the yen as the stock rebounds from a sell-off prompted by the growing U.S. – China trade dispute.

The greenback was 0.15 percent higher at 106.930 yen, from a low of 105.990 set the previous day.

The yen had rallied as the shares of Wall Street initially tumbled yesterday after the swift move of China to impose retaliatory tariffs on U.S. goods. However, a comeback by the U.S. equities helped the dollar bounce.

Meanwhile, the concerns about the trade war soothed after Larry Kudlow, the economic adviser of President Donald Trump, said that the administration was in “negotiation” with China. He also added that both countries are not engaged in a trade war.

The U.S. dollar extended gains as equities in the region followed Wall Street’s lead, while Japan’s Nikkei increased almost 2 percent.

“It's too early to say whether the markets have moved beyond trade conflict woes. The situation is still very fluid, and currencies, like dollar/yen, will remain hostage to each turn in equities,” a senior FX strategist, Junichi Ishikawa, stated.

“The focus shifts to Friday's U.S. jobs report for now, as steady economic fundamentals are about the only factor that can neutralize the negative effects stemming from political risks,” added Ishikawa.

The dollar was little changed against the Swiss currency at 0.9609 franc after increasing 0.2 percent in just overnight.

“The U.S. tariffs on Chinese imports may not be activated until after June, suggesting that the sanctions could be weakened by negotiations that take place in the meantime,” Masafumi Yamamoto, a chief forex strategist, stated.

Moreover, the euro went up 0.05 percent to $1.2284, which added modest gains to the previous day.

The dollar index against a basket of six major currencies was effectively flat at 90.123.

The Australian dollar, on the other hand, continuously surging after it was lifted by better-than-expected domestic retail sales data, it reached a nine-day high of $0.7726. Meanwhile, the Aussie was last down 0.2 percent at $0.7701.

FSMSmart gives you the latest news updates, market trends, and news about forex, commodities, stocks and many more! Open an account now and learn more about other investment opportunities on FSM Smart.