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NEW YORK – The pink dollar against the yen and the euro on a choppy session, as worries that a trade deal between the United States and China may not be imminent curtailed risk appetite and boosted safe-haven demand for the greenback.
White House economic adviser Larry Kudlow told CNBC that President Donald Trump did not ask U.S. officials to draw up a proposed trade plan for China.
Kudlow also said that he was not able to reach out to the two nations, and said that Trump "could pull the trigger" on additional tariffs on Chinese imports.
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Separately, Trump told reporters that a lot of progress had been made with China on trade, and it predicted the world's two largest economies would reach a very good deal.
Risk sentiment deteriorated after the Kudlow remarks, Juan Perez, senior currency trader with Tempus, Inc. in Washington, said.
The dollar was 0.51 percent higher against the yen, while the euro was down 0.19 percent against the greenback.
"Just looking at US dollar movements, the headlines surrounding US-China talks -progress or lack thereof – is contributing to swings in general sentiment sentiment, which is contributing to swings in the US dollar," said Eric Viloria, FX Strategist at Credit Agricole in New York.
Investors' view of the United States to be in better shape than its competitors.
On Friday, the US dollar was also reported to be the largest gainer in 9-1 / 2 years, which could keep the Federal Reserve on track to rise in December.
But the boost was relatively muted.
"I think we might be seeing some signs that dollar gains are starting to become somewhat limited at these levels," said Sireen Harajli, a foreign exchange strategist at Mizuho in New York.
The dollar index, which tracks the greenback versus the euro, yen, sterling and three other currencies, was up 0.25 percent at 96,519. It hit a 16-month high on Wednesday.
The offshore yuan was trading at 6.8928 per dollar as of 1914 GMT after surging to a high of 6.8525, its strongest level since Sept. 24.
Sterling was down 0.32 percent on the day. The pound was aided this week by the Bank of England if Britain's exit from the European Union is smooth.
The Canadian dollar is one of the most important markets in the world.
(Reporting by Saqib Iqbal Ahmed, Editing by David Gregorio and Leslie Adler)
© Reuters News 2018
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