The dollar eases in the market after having an explosive previous week. The greenback pulls some of its potential price surges today as the Asian stocks look to dominate the market. Against the yen, the U.S. currency showed steady performance.
The local Asian stocks open this week with a new quarter and a better than expected market performance. The stocks are tallying great prices this week, following the stellar performance the global equities have last week.
The MSCI’s world equity index managed to hit a massive market performance last week. The index showed great strength with a total of 1.2% increase in their first quarter. Analysts continue to point that the strong and robust performance will continue to affect globally stocks performance in the coming days and weeks.
These great performances across the boards are favoring the yen in the market, pushing dollar prices on relatively flat levels. The greenback remains softer in the market despite having great anticipation on the incoming key economic indicators.
The pair is looking to offset some of the robust growth the greenback have last week. The stronger Asian stocks kept the pair trading at 106.30 yen a dollar. The pair’s current movement is not as trivial as last week’s 1.5% incredible increase.
The dollar’s performance last week gave investors a new confidence after sinking deep since the year started. Against the yen, the dollar managed to recuperate some of its initial losses the year with last week’s performance, its biggest weekly gain since September last year.
The currency’s massive run last week was also a partial effect of the ongoing trade and tariff talks. According to sources, the U.S. and China are looking to go on an all-out trade war due to the newly imposed tariffs.
On the other hand, the greenback continues to tally massive losses this year. The dollar index continues to slump in the market, as a matter of fact, shedding a total of 2% in the previous quarter. The quarter dips are the fifth consecutive decline the currency experienced.
China, U.S. Tariff War
China was silent after the tariffs were imposed, but the latest events showed an answer to the United States. Reports from the China finance ministry revealed that country added an extra tariff of up to a whopping 25% on over 128 U.S. products.
The products include; frozen pork, wine and certain fruits and nuts. The new tariffs from China follow the aluminum and steel tariffs the U.S. imposed. A string of market reactions is still expected to hit this week after China’s surprising answers.
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