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Dollar Hovers Near Six Month High Following Trade Optimism

The greenback hovered near a six-month high against the Japanese yen while the Australian greenback rose to its strongest since July on Friday, floated by easing Sino-U.S. trade tensions.

The optimism around prospects for a trade agreement reduced demand safe-haven currencies such as the yen, however, with global currency markets in a holiday temper after Christmas Day on Wednesday, total trading exercise was mostly softened.

Beijing said Wednesday it’s in close contact with Washington on a trade agreement signing occasion, a day after U.S. President Trump announced he and Chinese President Xi Jinping would have a ceremony to approve the recently reached settlement.

Overnight, the greenback surged to as high as 109.68 yen against the safe-haven Japanese currency, a one-week high and not far from 109.73 yen, its late May high brushed earlier this month. In Asian trade, the duo was last quoted at 109.47 yen.

U.S. Treasury yields slid on Thursday after the Treasury Division sold $32 billion in seven-year notes to robust demand. The 10-year US10YR=RR last stood at 1.894%, its lowest level in 1/2 weeks.

The trade-sensitive Australian greenback firmed to as high as $0.6951 versus its U.S. equivalent.

Profits at China’s industrial corporations in November grew at the fastest tempo in eight months, breaking a three-month plunging streak, as production and sales quickened; however, broad weakness in domestic demand remains a risk for earnings next year.

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