FOREX-Dollar strengthens as trade war fears fade, risk appetite returns

collected by :John Locas

As the second quarter corporate earnings season begins, investors appear to be ignoring the deepening conflict between the United States and China over trade. A broad appetite for risk in currency markets on Tuesday saw the dollar rise 0.3 percent against the Japanese yen, a currency usually bought during times of political uncertainty, to 111.08 yen, approaching a six-month high. ADVERTISEMENTElsewhere, the British pound rebounded on Tuesday as fears faded about a challenge to Prime Minister Theresa May's leadership after the departures of two senior ministers. "The market is worried that yesterday's resignations could be a sign of major instability within the British government. Elsewhere currency markets were broadly risk-positive as investors appeared to shrug off concerns about the U.S.-China trade tensions.

FOREX-Dollar rallies on renewed trade war worries and upbeat Fed

The euro fell to a one-week low as the dollar gained in early European trading. The escalation in the trade row also put pressure on the yuan and Aussie dollar, both of which have been vulnerable to a worsening trade conflict. Equity markets fell. The yen's gains were limited after it dropped on Tuesday, following the Bank of Japan's pledge to keep rates low for an extended period. ADVERTISEMENTChina's offshore yuan fell 0.2 percent to 6.8372.

FOREX-Dollar, yen rise as US-China trade war worries perk up

as mentioned in The dollar index, which measures the greenback against a basket of six other currencies, was up 0.32 percent at 94.931. U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday. The yen, which tends to rise during periods of geopolitical or financial stress, strengthened on Thursday. The dollar was 0.24 percent lower against the yen, while the euro was down 0.58 percent against the Japanese currency. The Fed kept interest rates unchanged but characterized the economy as strong, continuing the central bank on track to increase borrowing costs in September.