Forex – dollar advances, boosted by Treasury bills


© Reuters. The dollar is advancing, boosted by Treasury bills

Investing.com – The u.s. dollar rose slightly Tuesday, pulling away from lows of more than a week, a sign of a relaxing of tensions in global trade, which has brought the rate of us Treasury bills above the key level of 3%.

The dollar index, which measures the strength of the dollar against a basket of six major currencies, was up 0.04% 92,60 at 02:58 AM (06:58 AM GMT), from the lowest of Monday, 92,11, which was the lowest since may 2.

The dollar has found support since the yield of us Treasury bills to 10-year-old has reached 3,025%, the highest level in three weeks. A rise above the top of 3,035% reached on April 25, the would be at its highest since the beginning of 2014.

The yields of u.s. bonds were boosted by signs of easing of trade tensions between the United States and China after u.s. president Donald Trump has promised to help the technology company china-based ZTE (HK: 0763).

Last month, the administration Trump has forbidden american companies to sell to ZTE, paralyzing society effectively.

A rebound in the dollar, which reached heights of four and a half months compared to a basket of currencies last week, is out of breath after the data, the inflationary us have tempered expectations of an acceleration of rate increases by the federal Reserve this year.

The Fed has raised its rates in march and has planned two further rate increases this year, although many investors rely on three increases.

Investors turn to data on retail sales in the United States later in the day looking for signs of strength in the economy.

The dollar is stronger against the yen, with USD / JPY up 0.22% to 109.89.

The euro is almost unchanged, with the EUR / USD at 1.1926, below the highs of Monday 1.1995, which was the highest since may 3.

The euro has reached its peak Monday, after the responsible policy of the european central Bank, François Villeroy de Galhau, has announced that the bank could give new indications on the timing of the next rate hike.

The british pound remained stable, with the GBP / USD to 1.3550 in view of the latest report on jobs in the United Kingdom later in the day.

Elsewhere, the australian dollar fell 0.11% to 0,7517, while the new zealand dollar was little changed, with NZD / USD last at 0,6910.

The Aussie and the Kiwi have had a mixed reaction to a batch of economic data from china indicating a slowdown in the economic dynamic.

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