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Of Rae Wee
Singapore (Reuters) – The dollar bouncing slightly on Thursday thanks to an increase in US treasure returns, although coins were marketed in narrow ranges, as investors struggled to determine the impact of a growing global trade war on the inflation and growth of the United States.
United States President Donald Trump threatened the European Union goods on Wednesday, as the main trade partners in the United States said they were retaliated by commercial barriers already erected by him.
An increase in world commercial tensions and worries about the recession risks of the United States have reduced world markets and have caused a great volatility in the currency market, as traders are seen between the relief and the hassle on Trump’s policy changes.
The markets were a bit quieter in the first Asian session on Thursday, as investors won a getaway to the fighting on the U.S. commercial policy.
The dollar increased by 0.05% against Yen to 148.31, recovering some of its losses from the previous week, when it fell at a minimum of five months against the Japanese currency, as the fears of an economic fall in the United States caused a rush to the Japanese currency as a safe refuge.
The Swiss franc was separated from the three -month Monday peak and last stood at 0.8817 per dollar.
The data published on Wednesday shows that inflation increased slightly less than expected in February, but the relief it offered could be temporary, as the data did not fully capture the Trump’s rate waterfall.
“What is most uncertain is the perspective of future inflation and the state of the United States’s economic activity, thanks in large extent to the unforeseen commercial policy of the United States,” said James Reilly, economist of senior economic markets.
“These are these problems that lead the markets and (the report) gave little vision on either of them.”
But US treasure returns increased as merchants opted for a compliance with inflation on the line, with a 10 -year reference performance that took place near a top one week to 4,3047%.
The two -year performance was changed little to 3,9866%.
This kept the dollar supported and ravaged the euro at the top of five months on Tuesday, with the single currency that obtained $ 1,0890.
Sterling increased by 0.06% to $ 1,2968, while the dollar index moved away from the five -month leave on Tuesday and fired at 103.57.
The Canadian dollar changed little to $ 1,4372.
The Canada Bank shortened its key policy rate on Wednesday at 25 basic points and raised concerns about inflationary pressures and the weakest growth arising from commercial uncertainty and Trump’s rates.
“The rates represent the pressures of inflation in the world economy, which would be a nightmare for central banks … Central bankers are more cautious and keep their mind open to what will come,” said Carol Kong, a currency strategist at the Commonwealth Bank in Australia.
