Yahoo Finance Dollar Extends Losses, Hits 1-Month Lows, Turkish Lira Lower
Investing.com - The dollar extended losses against a currency basket on Tuesday, falling to one month lows as a U.S.-Mexico trade deal eased fears over a trade war, while the Turkish lira fell more than 1% against the dollar.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.29% to 94.4 by 09:11 AM ET (13:11 GMT), its weakest level since August 1.
Concerns over heightened global trade tensions eased, dampening safe haven demand for the dollar, after the U.S. reached an agreement with Mexico on a trade deal aimed at overhauling the North American Free Trade Agreement.
However, U.S. President Donald Trump has said he could still put tariffs on Canadian autos if it refuses to agree to the new deal and also wants concessions on the country’s dairy products.
Markets also remained wary as a trade spat between the U.S. and China rumbled on after trade talks last week ended with little progress and both countries slapped fresh reciprocal tariffs on imports.
The dollar was little changed against the yen, with USD/JPY trading at 111.09.
The euro rose to fresh one-month highs against the dollar, with EUR/USD rising 0.33% to 1.1717.
The single currency hit its highest level of the year against the pound, with EUR/GBP rising as high as 0.9076 amid negative headlines on Brexit.
British Prime Minister Theresa May claimed Tuesday that a no-deal Brexit “wouldn’t be the end of the world” as she sought to downplay a warning from Chancellor Philip Hammond last week about the damage a no-deal Brexit will do the British economy.
Sterling managed to push higher against the softer dollar, with GBP/USD rising 0.32% to 1.2926.
The Turkish lira fell against the dollar as a diplomatic spat between Washington and Ankara continued after the country’s finance minister warned Tuesday that U.S. trade sanctions against Turkey could destabilize the Middle East.
Deteriorating relations between the U.S. and Ankara and worries about Turkish President Tayyip Erdogan's increasing control over monetary policy and the economy have seen the lira tumble almost 40% this year and hit record lows mid-month.
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