Wednesday, 18 April 2018 20:17 WIB | CURRENCIES |DOLLARDolar AS
The U.S. dollar clung to gains on Wednesday after rising from a three-week low as fading concerns about a trade war fed broader appetite for risk-taking among investors.
U.S. markets were buoyed by strong corporate earnings and that helped European equities on Wednesday as investors focused on economic data and put to one side worries about a global trade war.
Markets in Asia picked up on a positive finish in the United States and were helped by China™s decision to cut bank reserve requirements by 100 basis points for some commercial banks.
The dollar index against a group of six major currencies traded flat at 89.490 .
The dollar was helped by a weakened pound which fell to a four-day low on Wednesday after British inflation unexpectedly cooled to a one-year low in March.
The data has raised doubts over a near consensus view that the Bank of England will raise interest rates next month.
Euro zone data also came in weaker than expected as investors looked for signs of the viability of further European central bank monetary tightening.
The dollar has found support from economic indicators recently as perceived political risks recede, with Western strikes on Syria not expected to escalate.
The dollar rose 0.3 percent to 107.280 yen buoyed as improving risk appetite reduced demand for its Japanese peer, a currency often sought in times of market turmoil and political tensions.
But caution over U.S.-China trade tensions continued to linger in the background, confining currencies to narrow ranges.
The euro was up 0.1 percent at $1.2387.
The pound was down 0.5 percent at $1.4229 after it was nudged away from a post-Brexit referendum 22-month high of $1.4377 on Tuesday by weaker-than-expected British wage data.
Elsewhere, the Swiss franc fell to its lowest versus the euro since the Swiss National Bank scrapped its currency peg in January 2015.