Yahoo Finance Forex- U.S. Dollar Rises as Sterling, Euro, Fall
Investing.com - The dollar was higher on Thursday, while sterling fell after lower than expected retail sales.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% to 89.46 by 5:34 AM ET (9:34 GMT).
The dollar gained ground against the yen, with USD/JPY rising 0.15% to 107.38. Rising geopolitical and trade tensions have weighed on the dollar in recent months. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
U.S. President Trump and Japanese Prime Minister Shinzo Abe met in Florida this week and have agreed to intensity trade consultations. Trump wants a bilateral deal with Japan and said he would be willing to negotiate steel and aluminum tariffs if the two countries can come to an arrangement. Japan, despite being a long-term U.S. ally, currently is not exempt from the tariffs on imported steel and aluminium.
The pound inched down after retail sales came in lower than expected, adding doubts about the Bank of England’s monetary policy. GBP/USD fell 0.16% to 1.4179 after data showed that retail sales fell 1.2% in March compared to a rise of 0.8% in February.
Meanwhile sterling was also hit by data on Wednesday that showed U.K inflation fell to 2.5% in March, the lowest in a year.
The euro was down, with EUR/USD falling 0.11% to 1.2360.
Elsewhere, the Australian dollar was higher, with AUD/USD up 0.10% to 0.7792 while NZD/USD decreased 0.12% to 0.7310.
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