US Indices started the week higher after U.S. Treasury Secretary Steven Mnuchin declared that the trade war between the United States and China is “on hold” following their agreement to suspend the tariff threats that shook the global markets recently.
The dollar rose to a four-month high against the Japanese Yen and secured its gains against the rest major currencies. The strength in the US dollar is due to rise in Treasury yields on expectations that the Federal Reserve will raise interest rates at least two more times this year.
On Tuesday, the Greenback hit new highs vs. a basket of major currencies, backed by a rise in Treasury yields following a report that U.S. President Donald Trump was supporting a policy hawk as the next head of the Federal Reserve.
On Monday, the Greenback fluctuated vs. a basket of major currencies after mixed consumer inflation data clouded the outlook for another rate hike.
On Friday, the Greenback touched its biggest weekly drop in more than a month vs. a basket of major currencies, erasing gains posted after the previous session's upbeat U.S. data, as traders remained cautious ahead of U.S. inflation data, which will be released later on today.
On Thursday, The Greenback declined to two-week lows vs. a basket of major currencies amid fresh uncertainty over a potential U.S. rate rise before the end of the year.
On Friday, the Greenback railed to its highest level in seven-week vs. a basket of major currencies, amid optimism among traders ahead of the crucial U.S. nonfarm payrolls data.