2 months ago
Forex

U.S. Dollar Flat as Yen Rebounds

Investing.com - The greenback was flat on Monday as the safe haven yen rose after China’s exports unexpectedly fell,

Investing.com - The greenback was flat on Monday as the safe haven yen rose after China’s exports unexpectedly fell, increasing worry over global demand.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched down 0.07% to 95.20 as of 10:25 AM ET (15:25 GMT), while USD/JPY slipped 0.26% to 108.24.

Chinese exports unexpectedly fell by the most in two years in December, while imports also declined. The numbers increased worry that the U.S. tariffs on Chinese goods are impacting its economy. Separately, data also showed that China had its biggest trade surplus with the U.S. in 2018, which could impact on-going trade negotiations with the White House.

The dollar has fallen in recent weeks, as investors expect the Federal Reserve to pause its rate of monetary tightening. Fed Chairman Jerome Powell reiterated last week that the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable.

Elsewhere, sterling recovered slightly after reports that Theresa May has supposedly instructed her party to support an amendment with a Dec. 2021 end date to the backstop agreement.

GBP/USD inched up 0.15% to 1.2859.

The euro was mostly flat, with EUR/USD at 1.1463.

The risk sensitive Australian and New Zealand dollars, with AUD/USD falling 0.2% to 0.7199 and NZD/USD down 0.1% to 0.6822.

Both currencies had gained around 1.5% versus the dollar last week as risk sentiment improved on hopes for both a U.S.-Sino trade deal and more aggressive stimulus from Chinese policymakers to support its ailing economy.

-Reuters contributed to this report.