By Tom Westbrook
SINGAPORE (Reuters) – The dollar appeared to be trying to win a fourth consecutive weekly loss on Thursday as it acquired investors from US assets, but pulled a seven-month low against the yen as US trade talks have so far shunned currency debate.
The dollar was assaulted as the US threatened, imposed and subsequently postponed massive tariffs, undermining investors’ confidence in US economic growth and stability.
The 8% gain of the Safe Haven Swiss Franc since April 2 is the largest of the G10 currency, testing strong resistance at 0.8151 per dollar and 0.81 for a decade.
The euro and yen aren’t too late, but within two weeks, we’ve seen a profit of about 5% increase in one dollar.
Even if the European Central Bank was expected to offer a 25-based point rate cut later in the session, the euro was slightly eased in the Asian morning, but remained scheduled to rise for the fourth consecutive week.
The dollar bounced beyond 142, which Japanese economy Minister Lyosei Akazawa said had not been discussed in trade talks in Washington after touching on the seven-month lowest of 141.62 yen early in the Asian session.
The yen had been won at the meeting in hopes that the country could agree to strengthen the yen against the dollar. However, if you place the highest record position dated back to 1986 in the longest yen, the profits could be relieved if no transactions occur.
The dollar index was parked at 99.5 and was set to mark losses for four consecutive weeks.
Trade could brighten up in the Easter break.
Overnight US retail sales have grown the most in over two years, with Federal Reserve Chairman Jerome Powell appearing to be in a hurry to lower interest rates.
However, the momentum continues to sell the dollar.
“We believe this is a decooperative approach and there is no real risk to the status of the US dollar reserve currency,” a City analyst led by G10 rate chief Danielton said in a memo.
“But the world is an overweight US asset,” they said. “In the end, this ‘sales America’ trend could put a serious strain on USD this year. ”
The memo predicts City will hit a high of around $1.20 over the next six to 12 months before the dollar can begin a comeback.
The dollar slide has already destroyed the New Zealand dollar from recent range and is doing the same with the Australian dollar. [AUD/]
The Kiwi exceeded 50 days on Thursday, with a 200-day moving average of $0.5932, but despite a surprisingly hot inflation read, it couldn’t go further, as price increases temporarily rise and is unlikely to reduce derailment.
