President Donald Trump recently said that the “dollar is getting strong” even amid the looming geopolitical crisis the county helped the currency to adjust and increase among a basket of currencies. The greenback receives a bit of room from working on the lashes it took from the latest setbacks it received from the talks of Fed rates to keep interest low.
The dollar rose by as much as 0.45% against a basket of currencies right after President Trump’s remarks, analysts are expecting for the largest one-day gain the currency can have today after almost two weeks of sluggish growth.
Recently, the greenback lost as an estimated 0.6% against major currencies and according to Peter Ng, senior currency trader at Silicon Valley Bank in Santa Clara, California, “Clearly, I think it was oversold yesterday,” Ng also mentioned that the nervous environment from the geopolitical turmoil caused the market to be very sensitive on such headlines.
Dollar Fights Yen Back
After having strangled by the Japanese currency, even with the higher risk of aversion in the country, the dollar finally fights back with its newly gained momentum. After the greenback hitting a five-month low of 108.37, it finally eases at 109.10 yen after yesterday’s headline.
According to Commerzbank’s currency strategist Thu Lan Nguyen in Frankfurt, "Yes, it was negative what (Trump) said ... but it’s not a big surprise – it wasn’t a U-turn in his rhetoric on the exchange rate so far," Nguyen added that "The question is, is he able to influence monetary policy in order to get a weaker dollar? That is still an open question."
Escalating Geopolitical Conflicts against Dollar
The US headlines again as it drops “the mother of all bombs” in Afghanistan, the dollar held its ground even after this drastic news. Juan Perez of Tempus Inc. noted that “dollar has sustained its gains from this morning after the blast because after all, we do have a history in Afghanistan,” Perez also insisted that all the conflicts and turmoil makes the greenback a safe-haven.
Australian and New Zealand Dollar
The Australian dollar also looks for a bit of improvement from the bolstering data coming from the country’s economy. Figures of 60,900 jobs were created in the month of March for the country’s economy, overtaking market expectations by a huge margin. An Aussie is trading at 75.71 US cent, while the kiwi is at 70 cents per dollar earlier this Friday.
Euro Falls Short Entering Friday
Euro declines as much as 0.5% as the growing concerns about the French Presidential election, it is currently at $1.0619 after hitting a one-week high in overnight trading. The possible US military action against the geopolitical conflicts also pushes euro investors in the corner. The currency looks to bounce back some of its loss, after all, it reached as much as 0.23% against the greenback for the week.
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