Yahoo Finance Dollar Hovers at 13-Month Highs; Euro Edges Lower
Investing.com - The dollar was flat against its rivals Thursday, pressured by a bout of mixed U.S. economic data and improving risk sentiment after the U.S. confirmed trade talks with China would resume.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.01% to 96.58.
White House economic advisor Larry Kudlow confirmed Thursday that the U.S. and China will resume trade talks later this month, ending a two-month stalemate during which both countries have imposed billions of dollars' worth of tariffs on each other's goods.
Concerns over Turkey eased as lira continued its recovery from a slump earlier in the week, underpinning risk sentiment, after Turkish financial minister Berat Albayrak reportedly told investors that the government would tighten fiscal policy and ruled out capital controls.
But analysts said the "half-measures" implemented by Turkey this week were unlikely to pull its economy from the brink and called for the country to adopt a policy overhaul.
"These exemplify the half-measures that are unlikely to restore confidence," Berenberg Bank said. "Considering the country shows the 'classic signs' of economic overheating, Turkey needs to rise interest rates and implement fiscal prudence, including less reliance on credit-financed vanity projects such as the next mega-airport or a channel to bypass the Bosporus."
The dollar was also knocked by mixed U.S. economic data on housing and regional manufacturing.
The Commerce Department said Tuesday U.S. homebuilding fell 0.9% to a seasonally adjusted annual rate of 1.168 million units in July, well below economists’ estimates for a 7.4% rise.
In a separate report, the Philadelphia Fed said its manufacturing index fell 13.8 points to a reading of 11.9, from 25.7 in July.
The euro gave up most of its gains despite an earlier surge on the back of a rising in the lira.
EUR/USD rose 0.17% to $1.1366 after languishing at 13-1/2 month lows.
Elsewhere, the return of risk appetite weighed on safe-haven yen and Swiss franc fell, helping the greenback pare losses.
USD/JPY rose 0.14% to 1110.90, while USD/CHF rose 0.25% to 0.9962.
GBP/USD rose 0.05% to $1.2702, while USD/CAD rose 0.17% to C$1.3164.
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