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Forex - Dollar Steady near 11-Month Highs, Trade Uncertainty Caps Gains

Published 28/06/2018, 09:05
© Reuters.  Dollar steady near 11-month highs, trade uncertainty caps gains
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Investing.com - The dollar was trading near eleven-month highs against a basket of the other major currencies on Thursday, but gains were held in check as uncertainty over U.S. trade policy limited gains.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 95.06 by 03:49 AM ET (07:49 AM GMT) after climbing 0.65% in the previous session.

Concerns over trade tensions eased on Wednesday after the Trump administration appeared to back away from a blanket ban on Chinese companies investing in U.S. companies, instead is talking about using a strengthened security review process to deal with the issue.

But uncertainty remained after White House economic adviser Larry Kudlow told Fox Business Network later on Wednesday that Trump's announced plan did not indicate a softened stance on China.

The dollar was a touch higher against the yen, USD/JPY at 110.32, holding below the highs of 110.48 hit on Wednesday.

The euro was slightly higher against the dollar, with EUR/USD up 0.1% to 1.1563 after dropping 0.8% a day earlier.

The pound slid lower, with GBP/USD losing 0.18% to trade at 1.3091.

The trade sensitive Australian and New Zealand dollars remained under pressure, with AUD/USD last at 0.7342, not far from the one-and-a-half year low of 0.7322 reached on Wednesday.

NZD/USD was down 0.44% at a one-year low of 0.6763.

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