Dollar withdraws from six weeks low, but tariff tension continues | Today news

By SAQIB IQBAL AHMED NEW YORK (REUTERS) -The US dollar rose on Tuesday and returned from a six -week low against the euro, even though investors were concerned about possible economic damage due to the trade war conducted by President Donald Trump’s administration. “We had a big sale in the dollar and we jumped it back a bit today … I don’t think there was a lot of fresh news to say that the dollar turned in any meaningful way,” says Marc Chandler, main market strategist at Bannockburn Global Forex LLC. “I would say the refusal is still quite limited, quite limited,” he said. The dollar was 0.9% higher against the yen at 144.00. The euro fell 0.6% to $ 1.1371, after touching a six -week high of $ 1.1454. Data showed earlier that inflation in the eurozone under the European Central Bank’s target of 2%has delayed, supporting expectations for a rate reduction later this week. For the year, the dollar is down approximately 9% to the euro. While the global stock markets have recovered in the broad of an earlier April sale in the wake of the on-the-weather-against-weather night of Trump’s tariff threats, the Greenback remains under pressure. US duties on imported steel and aluminum will double up to 50% on Wednesday, the same day as the Trump administration expects countries to submit their best offers in trade negotiations. Trump and Chinese President Xi Jinping would probably have a call to iron out trade differences soon, Treasury Secretary Scott Bestent said on Sunday, although there was a fierce rejection of the China’s ministry of US accusations on Monday that Beijing had violated their trade agreement. “Trade developments remain crucial. Reports indicate that China leverage is getting over the US by controlling disk supply chains and rare earth,” said strategist Francesco Pesole. “Trump and Xi Jinping are going to talk this week, and direct discussions in the past have sometimes relieved tension. It leaves room for a positive surprise that can help the dollar at some point this week,” he said. On Tuesday, the data showed that US work openings increased in April, but discharge took up a move in line with a slowing job market amid a dull economic outlook due to rates. Federal Reserve officials again argued on Tuesday for caution over monetary policy, as Trump’s trade war continues to inject significant amounts of uncertainty and the risk of economic weakness in prospects. Fiscal concerns have also led to a broad ‘Sell America’ theme that has lowered the dollar assets from shares to treasury bonds in recent months. This concern is coming in a sharp focus this week, as the Senate begins to consider the tax cut and expenses of the administration, which is estimated to add $ 3.8 trillion to the federal government’s debt of $ 36.2 trillion in the next decade. However, traders in the foreign exchange options market are positioned for the US currency to further weaken. The British pound was 0.2% lower at $ 1.3519 on Tuesday, before a raft of Bank or England speakers and an auction of long-dated government bonds that could provide a benchmark of investor confidence in Britain’s finances. Bitcoin, the world’s largest cryptocurrency according to market cap, was 1.2% higher on the day at $ 106,219. (Reporting by Saqib Iqbal Ahmed; Additional Reporting by Amanda Cooper and Rocky Swift; Editing by David Evans, William Maclean and Nia Williams)