© Reuters. The dollar is stable on concerns about a trade war
Investing.com – The us dollar is maintained against a basket of other major currencies on Tuesday, as concerns have eased because of the prospect of a trade war triggered by the tariffs proposed by the us president, Donald Trump for steel and aluminum.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was steady at 90.00 at 03:38 AM (08:38 GMT).
The fears of a trade war is imminent, eased Monday, the markets believe that the rates provided were a negotiating tactic after Mr. Trump has stepped up its pressure on Mexico and Canada, stating that it would raise the fees on steel imports when they sign a new version of the Agreement on free trade in north america, or NAFTA.
But investors remained cautious on fears that the protectionist attitude of the administration Trump could weigh on the dollar, as well as on bonds and equities.
Some market participants are also concerned that the proposed rates do not cause inflation and retaliation from trading partners with the americans. The main holders of us Treasury bonds, including China and the european Union, could thus reduce their holdings of americans.
The dollar was little changed against the euro, with the EUR / USD to 1,2341, after falling to a low of 1,2268 Monday, due to concerns about the electoral results of Italian inconclusive on Sunday.
If no party wins a final vote, with Italy at risk of being plunged into a period of political instability that could derail the progress of economic reform in the third largest economy of the euro area.
Against the yen, the refuge, the dollar was slightly lower, with the USD / JPY slipping 0.17% to 106,03.
The yen has reacted after the governor of the Bank of Japan, Haruhiko Kuroda, said that there were downside risks to the forecasts of the central bank according to which inflation would reach its 2% objective by 2020.
The japanese currency was progressing last week after that Kuroda has said the BoJ will discuss an exit from monetary easing if it were to meet its inflation target.
The canadian dollar was trading close to a low of eight months, with a decline in the USD / CAD 1,2989.
The australian dollar advanced 0.12% to 0,7771, after the country’s central bank has kept interest rates at record highs and seemed less confident that the economy would grow 3% or more this year, reducing the prospects of rising rates in the coming months.